Another phase of GST Council meeting starts today in Guwahati. Bihar Deputy Chief Minister Sushil Kumar Modi said that GST Council decided to cut the 28% GST to 18 % tax rate on a wide range of mass consumption goods. The GST council has effectively cut the rate on 177 goods. Chewing gum, chocolates, cosmetics like products of facial make-up, shaving, and after-shave items, shampoo, deodorants, washing powder detergent and marble will have lower 18 percent tax rate.
There were 227 Items with 28% on GST slab, The fitment committee had recommended 62 items to cut, But the GST Council has further included 12 more items,” Sushil Modi said.
“Luxury goods like washing machines and air conditioners have been retained at 28 percent,” Modi said. “There is the consensus that slowly 28 percent slab should be brought to 18 percent. But it will take some time because it has a big revenue implication,” he added.
Today, at the 23rd meeting of GST, the Council could also decide on lowering of tax rates restaurants food items. The GST Council is also expected to offer more relief to small and medium enterprises due to compliance burden. The panel also recommended lowering tax rates for the manufacturers and restaurants under the composition scheme as manufacturers presently paying GST at 2 percent, the rate for restaurants is 5 percent.
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