GST rates reduced to 18% from 28 % in 178 items

GST rates reduced to 18% from 28 % in 178 items

GST rates reduced to 18% from 28 % in 178 items

The decision was taken at a "close-door" meeting of GST Council in Guwahati today. Besides, the meeting also chose to reduce the tax slab of various other items.

The council is likely to deliberate on a number of topics, including extended liberalization given to small traders, rate cuts on A/C restaurants from 18 to 12 percent, and the issue of benami properties.

The Goods and Services Tax (GST) Council, which has been holding its two-day meeting in Guwahati, reduced the tax rate of almost 175 items from 28 per cent; however, 50 luxury and "sin" goods, including tobacco, will remain in the highest slab, according to media reports on Friday.

The two-day GST Council meeting was held in Guwahati to review the progress of the new tax regime three months after it was rolled out. Under GST, various goods and services have been placed in the brackets of 5, 12, 18 and 28 per cent.

"When GST rate is capped at 18 per cent, this government would have learnt its lesson belatedly".

The rate of GST in case of eight items have been reduced to five per cent from existing 12 % and in case of six items it has been reduced to nil from existing six per cent. The move came on the back of findings that the restaurant sector was not forwarding the benefits of the input tax credit (ITC) received to its consumers.

Chidambaram on Friday said Congress is "vindicated" by reduction change in GST rates, and said that it was done because of the Gujarat elections. All these got input tax credit, a facility to set off tax paid on inputs with final tax. "Why is electricity and petrol kept out of GST?" he said.

Ahead of the GST Council meeting, Punjab, Karnataka and Puducherry, where the Congress is in power, had jointly voiced their reservations over glitches with the GST tax-filing network, demanding that real estate and petroleum products be brought under the new regime and the tax rate be kept at no more than 18%.

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