Guwahati: In the heavy relief to consumers, Goods and Services Tax (GST) Council has reduced the tax rate of 178 items from existing 28 per cent to 18 per cent. The changes will come into effect from November 15, Union Finance Minister Arun Jaitley said on Friday.
Jaitley said, all the restaurants in the country will be given 12 percent to 5 percent GST non-AC and 18 percent for AC restaurants. Jaitley said, addressing the media in Guwahati.
Apart from this, 13 items have been reduced from 18% to 12%, six commodities have been increased from 18% to 5%, and eight commodities have been made 5% to 12% and 6 items to nil from 5%.
Only 50 items, mostly flaws, sin and luxury goods were placed in the top 28 percent tax bracket.
The Jaitley said the restaurant will be deprived of the benefits of the input tax credit (ITC) except the hotel hotels. He explained that the ITC benefits given to the restaurant will be given to the customers.
Jaitley said, “However, we found that the hotels were not doing so, we had to decide that the restaurant industry would not enjoy ITC’s benefits,” Jaitley said that some industries are giving ITC benefits to consumers. The Outdoor catering with ITC will be 18 percent.
In the last few meetings, as a part of our effort to rationalize the GST structure, the Council is reviewing the rates from time to time.
When the fundamentals were originally fixed with prior taxes, The VAT was implemented in particular, especially in the VAT category, “Jaitley said.
We have exercised in the last three meetings, we are systematically looking at the tax bracket of 28 percent and it is ready to rationalize items in a lower category.
The Finance Minister said that the GST was also on the agenda of the Council to bring real estate, but it was abandoned in the next meeting. Shortly after the 23rd GST Council meeting, Jaitley said, “We could not take up the agenda of real estate in the meeting.”
There were 228 items in the 28 percent slab, the fitment committee recommended that it should be deducted on 62 items, but the GST Council has cut 12 more items.”
Jaitley said that the 18 percent less GST on chocolate, after shave, chewing gum, deodorant, washing powder, detergent, marble will be levied. The 18 percent tax rate for facial makeup, shaving, chewing gum, chocolate, g and shave items, shampoo, deodorants, washing powder detergents and granite and marble preparations will be attracted to all types.
There was unanimity in the 28 percent category that there should be only sin and faulty goods. Therefore, today the GST Council has made a historic decision, 28 percent slabs will have only 50 items and the remaining items will be brought up to 18 percent.”
The Paints and cement have been kept in the 28% tax bracket. He said, “Luxury goods like washing machines and air conditioners have been maintained at 28 percent,” he said.
Earlier, Bihar Deputy Chief Minister Sushil Modi said that the decision made by the GST Council will be an annual revenue of Rs 20,000 crore.
He said, “It was a consensus that gradually 28 per cent slab should be brought to 18 per cent, but it will take some time because it has huge revenue effect.”
