In the biggest GST (Goods and Services Tax) revision that has taken place recently; the government has cut down GST rates on 200 items including chocolates, wrist watches, and what not.
The decision was taken at the 23rd GST Council meeting that took place on Friday in Guwahati, Assam. As per the overhaul, only 50 items will remain in the 28% tax slab while the other 178 items will move to the 18% bracket, from 15 November onwards.
Image Courtesy: Hindustan Times
Listed below are the important pointers that summarize the whole GST rates revision:
• Under GST, the goods and services are categorized into 4 tax slabs- 5%, 12%, 18% and 28. The council has decided to move 178 items from 28 % to 18% category.
• In more changes that are to be done, 13 items will be moved from 18% to 12% and 6 items will be moved from 18% to 5%. Furthermore, 8 items will come down from 12 to 5 while 6 will be shifted from 5 to nil.
• The items that have been moved from 28% to 18% tax slab include the likes of chocolates, chewing gums, shampoos, detergents, henna powder, hair cream, deodorants, lamps, fans, sanitary ware, marble, granite, cables, wires, electrical boards, fire extinguishers, rubber tubes, and all musical instruments & their parts.
• The restaurants in and outside hotels will be charged with 5% GST while those in starred hotels carrying room tariffs of more than INR 7,500 a night, customers will be required to pay 18% GST. Also, the ITC (Input Tax Credit) benefit to restaurants has been revoked as they were not beneficial to customers.
• Reviewing the return filing cycle, the council has eased rules and deadlines for the current fiscal year. The penalties for late filing have also been relaxed.
• Items categorized under the 28% slab include Bidis, pan masala, ceramic tiles, water heater, vacuum cleaner, automobiles, motorcycles, ATM, vending machines, weighing machine, aircraft for personal use, etc. The Services in the slab include race club betting, private-run lotteries, and cinema.