23rd GST council meeting have been finally concluded with several changes specially GST rate cuts on more than 30 items. The council decided to bring wide range of daily use items from 28% to 18% slab. The most heard one is of eating out as it got slashed from 18% to 5% tax slab even if the restaurant is AC or Non-AC or it is in or out hotel. Here’re some of the GST council meet updates you must need to know as an Indian.
GST Council meet outcome and new rate policy:
However; the only exception to this is those star hotels where the room tariff is more than 7500/-. In such hotels, tax rate is retained at 18% only.
Barring 50 items out of over 200 odd items are still in 28% apart from which most of the items got reduced from 28% slab to 18% slab. Total 178 items have been reduced from 28% to 18% slab. Mainly luxury items but exclusding the luxury items, only few items like cement, paint or tobacco/cigarette is still in 28% slab.
Items like shampoo, deodorant, aftershave lotion, chocolate, chewing gum, toothpaste, shaving-cream, shoe polish and nutritious drinks are o longer in the 28% tax slab.
Picture Courtesy: LiveMint
Construction companies are questioning intension of GST council as they have kept Cement and Paint still in 28% slab along with other luxury items. However; Marble and granite have came from 28% to 18% slab.
Total 13 items have been moved from 18% to 12%, 6 items from 18% to 5%, 8 items from 12% to 5% and 6 items got reduced from 5% to nil.
GST council also raised the composition scheme threshold from earlier 75 lakhs to 1 crore on oct 1st meeting and then finally to 2 crore on this 23rd council meet.
The council also decided that the rate for manufacturer and traders under composition will be only 1% and no inter-state taxes or input tax credit will be levied composition players.
The congress has alleged the BJP government that they have intentionally delayed the GST reviews due to crucial Gujarat election happening in the very next month where already small traders who are also important voter group are upset with the GST.
Read what people talked about it:
“Panic stricken government has no option but to concede demands for change. Thanks to Gujarat elections, government forced to heed advice of opposition and experts on flaws in implementation of GST,” said former Union minister P Chidambaram.
Congress Vice-President Rahul Gandhi says, “We will not allow BJP to impose a Gabbar Singh Tax on India. They cannot break the back of the small and medium businesses, crush the informal sector and destroy millions of jobs.”
“Tax rates should have been set lower from July 1 itself and I have said that 28% tax rate means you are encouraging black marketing,” Delhi deputy chief minister Manish Sisodia said.
Deputy CM of Bihar Mr. Sushil Modi who are also in the panel of 23rd council meeting, says that especially good used by common public have been reduced from 28% to other slab. He says “Only luxury goods and items such as tobacco and cigarettes have been kept in the 28% slab.”
Amit Mitra, Finance Minister of WB said “opposition parties had fought and brought down the tax rates on different items but they (the government) did not agree totally and a few essential items are still in the higher slab of 28 per cent.”