GST Council: Only 52 of 227 Items remain under 28%
At its 23rd meeting, the GST Council announced a slew of reforms in India's new tax regime. One was the reduction of items under the highest tax slab of 28% from 227 to 52. The rest will now be taxed at 18%. This will cause a revenue loss of Rs. 20,000cr, the Council estimated. Which items are cheaper now? Find all details here.
Which goods are cheaper now?
The Council has decided only sin goods should remain in the 28% tax slab; hence ACs, washing machines, cement and paint, and naturally tobacco and cigarettes, have been retained in this bracket. Tax has fallen to 18% on common-use products like chocolate, beauty products, aftershave, detergent, powder and marble. This comes on the back of widespread criticism that goods had become costlier under GST.
Excise board tweets tax rates of different items
What else is expected?
To ease GST for business, the Council is expected to continue the simplified GSTR-3B for a year or more instead of a few months. Small firms might be allowed to file returns quarterly, unlike large businesses which have to file monthly. The former could file GSTR-1/2/3 monthly but GSTR-3B quarterly. Changes are also expected in the composition scheme.
The Council has constantly tried to simplify GST
The GST Council has been constantly trying to ease the new regime. Last month, it announced several revisions in the GST structure. The composition scheme turnover threshold was increased to Rs. 1cr from Rs. 75L. All exporters will get an e-wallet from April 2018, it announced. There will be a notional amount for credit. The eventual refund will be offset from that amount.
