GST on daily-use goods expected to go down
Consumers and small-and-medium businesses across India may soon have a reason to celebrate. The goods and services tax (GST) on several items of common use such as furniture, electric switches, plastic pipes and shampoo is likely to be slashed from the current 28% to 18%. The GST Council will consider lowering taxes and simplifying return filing rules in the next meeting on November 10.
What does the GST Council do?
Chaired by finance minister Arun Jaitley, the council has representatives from all states. It has been meeting every month since GST was introduced last year. Aiming to relieve businesses and consumers from multiple taxation, it has so far rationalized tax rates for over 100 items.
Sectors adversely affected by GST to likely get benefit
The council is likely to rationalize tax rate in sectors that have been adversely affected by the GST. For instance, manufacturers of weighing machines and compressors paid 14.5% and 17.5% taxes respectively in the pre-GST regime. But with one tax policy, their tax rate has shot up to 28%. Similarly, the GST on plastic durables and furniture will also be revised to 18%.
GST has enhanced the ease of doing business in India
GST was introduced on July 1, 2016, to standardize taxation across India with the motto 'One Nation One Tax'. Under GST, the taxes on various goods and services have been bracketed in four categories 5%, 12%, 18% and 28%. GST has enhanced the ease of doing business in India by subsuming several central and regional taxes such as excise, service tax and VAT.
