Only 62 items likely to stay in 28% GST slab
About three-fourth items
in the highest tax slab may move to lower brackets
LATEST
NEWS : Those
planning to buy new furniture or refit electric switches might have to pay less
after Friday, as the GST
(goods and services tax) Council is likely to slash the indirect tax
rates on these items at its meeting in Guwahati.
At present, these attract 28 per cent tax. As many as 165
such items could be moved to the 18 per cent category, with only 62 attracting
the highest rate. Those retained in the highest category could include digital
cameras, shaving creams, paints and varnishes, cigars, pan masala, chocolates,
cosmetics, vacuum cleaners, refrigerators, washing machines, hair conditioning
items, hair dyes, and marble and granite.
Some common items might also have their rates slashed from
18 per cent to 12 per cent, as demanded by states such as West Bengal.
At the Friday meeting, the Council will also have a
presentation about the inclusion of real estate under the new indirect tax
regime. Reducing the compliance burden on taxpayers would be a part of the
exhaustive agenda.
If these suggestions of the “rate-fitment committee” are
accepted, it would be the biggest rejig of rates since the GST roll-out on July
1 this year. Many common goods, which make up 75 per cent of the highest GST
slab, will become cheaper.
“This will be a big relief for consumers and industry. It is
to be seen if all states accept it,” said a government official on condition of
anonymity.
Over 1,200 products and services were fitted into one of the
four tax slabs — 5, 12, 18, and 28 per cent — before the roll-out.
A state government official said there would be some discussion
on trimming of items in the 28 per cent slab. “Some rules need to be formulated
on rate reduction. It can’t be done by the fitment committee alone. There needs
to be some basis for that,” said the official.
Finance Minister Arun Jaitley had said at an event on
Tuesday that some of the items should never have been in the 28 per cent slab.
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