Business

GST slabs on 178 items slashed to 18% from Nov 15, eating out gets cheaper


Guwahati, Nov 10 (IANS): In a major revamp of the GST tax structure, the GST Council on Friday removed 178 items from the highest 28 per cent category while cutting the tax on all restaurants outside starred-hotels to 5 per cent but withdrawing input credit facility for them. Industry welcomed the changes saying these would boost consumer demand

Only 50 products, including luxury and sin items, white goods, cement and paints, automobiles, aeroplane and yacht parts have been retained in the top 28 per cent slab.

"The GST Council has decided to slash tax slabs of 178 items from 28 per cent to 18 per cent. It will be applicable from 15th of this month (November)," Union Finance Minister Arun Jaitley said while briefing media persons after the two-day meeting here.

West Bengal Finance Minister Amit Mitra earlier told reporters that the loss on account of a "hasty and ill-designed" GST had resulted in the exchequer losing around Rs 60,000 crore for the Centre and Rs 30,000 crore for the states in just the first three months.

With the latest decisions, GST has been cut on a host of consumer items such as chocolates, chewing gum, shampoo, deodorant, shoe polish, detergents, nutrition drinks, marble and cosmetics.

Luxury goods such as washing machines and air conditioners have been retained at 28 per cent.

"Thirteen items, which were earlier under 18 per cent, have been brought down to 12 per cent. Six goods have come down from the 18 per cent slab to five per cent, eight items have come down from 12 per cent to 5 per cent and six items from 5 per cent to zero tax," Jaitley said.

Eating out has become cheaper as all restaurants outside high-end hotels charging over Rs 7,500 per room will uniformly levy GST of 5 per cent. The facility of input tax credit for restaurants is, however, being withdrawn as they had not passed on this benefit to consumers, Jaitley said.

Restaurants in hotels with rooms above Rs 7,500 per day would continue to pay 18 per cent GST with the benefit of input credit.

The GST Council also made changes in return filing procedures to reduce the compliance burden for the small taxpayers. It decided that filing GSTR 3B would continuing till March 31, 2018.

"All taxpayers will continue to file GSTR 3B. In case of small tax payer or nil tax payments, 3B will be simplified so that in two or three steps one can easily file their return," Finance Secretary Hasmukh Adhia told reporters.

"The Council also decided that for this fiscal, only GSTR 1 will be filled and because we are running in a backlog -- where we will file return for July only by December 11," he said.

"For taxpayers above Rs 1.5 crore turnover and who have large number of invoices, we do not want to keep their returns pending for a quarter and instead they should file their invoices monthly," he added.

The Council also decided that penalty for late filing for a 'Nil' tax payer would now be at Rs 20 per day from the earlier Rs 200, and for others, it was cut to Rs 50 per day.

The Council deferred a decision on bringing real estate under GST to its next meeting, for lack of time.

Welcoming the changes, industry body Assocham said these would lead to a pickup in consumer demand and help revive business sentiment.

"The increase in the composition scheme threshold would make life much easier for the small business entities," Assocham Secretary General D.S. Rawat said in a statement.

Deloitte India Partner Mahesh Jaising said: "The reduction in GST rates should reduce the burden on the common man. Hopefully, this is the start to the changes which are eagerly anticipated."

Abhishek Jain, Tax Partner, EY said the Council meeting had produced "a mixed bag for the real estate sector with positives like rates of granite and marble being lowered from the current 28 per cent to 18 per cent, and negatives like non-alteration of cement rates."

"As typically, GST in relation to construction becomes a cost to most, non lowering of the significant tax costs of cement has disappointed the construction industry and customers as a whole," he said.

Comment on this article

  • Ruchir Agarwal, mangalore

    Sat, Nov 11 2017

    Whether GST is reduced or no manufactures have increased their rates citing GST !! now as if they will reduce ? they got an escuse to increase the basic cost

    DisAgree Agree [1] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Sat, Nov 11 2017

    GST become a laughing subject.., Govt don't know what is done..., what it is doing ... & what is going to do...., Simply a an act of Garbage class..., among other things...., GST on chai at restaurant is reduced to 5%...,
    another 18 months Hindustani's must tolerate...,

    Let us hope that this GST won't increase upwards after Gujarat Assembly election result (INSULT on a lighter side) is out.., don't know how brain will function after that..., let us wait & watch...!!!!

    jh
    jai hind..,

    DisAgree [2] Agree [8] Reply Report Abuse

  • Roshan, Mangaluru

    Sat, Nov 11 2017

    The stupidity of Modi Govt., is on display.

    What these people do not understand is there is a chain reaction for all their actions. In many place the MRP is inclusive of GST and Yes, these values(numbers) has to be there on each of the product. When the GST was introduced many firms had to re-work their pricing and labels. These are already in the market. Now it is revised. They have the same efforts and costs to re-do that they have done already. Along with that there will be confusions of all kind.

    Guess, Modi govt., is hell bend to ensure, Industry and common man suffers to the core.

    DisAgree [2] Agree [13] Reply Report Abuse

  • Navin, Kundapur

    Sat, Nov 11 2017

    Only fake promises you all looted common man and your party ministers made unlimited wealth...

    DisAgree [2] Agree [15] Reply Report Abuse

  • dylan, Mangalore

    Sat, Nov 11 2017

    The MRP on the products is already taxed says inclusive of taxes and over that customers are charged GST so we are charged twice. Why cannot we change the prices on the products first?

    DisAgree Agree [12] Reply Report Abuse

  • Praveen, Mangalorie

    Sat, Nov 11 2017

    What is GST free ???? ATM Swipe also deduct GST ??? how can Common Man live?????

    DisAgree [1] Agree [20] Reply Report Abuse

  • mahesh, Mangalore

    Sat, Nov 11 2017

    So how do you propose to collect tax?
    Or should there be no tax at all?

    DisAgree [12] Agree [2] Reply Report Abuse

  • Peter, KSA

    Sat, Nov 11 2017

    U turn bound to happen when blacksmith is given goldsmith's work. Everything is an experiment and then shameless u turn. Unpad govt. should be replaced by well educated gem like Dr. Manmohan Singh. BJP mukth bharat is the solution.

    DisAgree Agree [15] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Sat, Nov 11 2017

    What is the fun in imposing high and then reducing which shows that the GST exercise was implemented without sufficient preparation

    DisAgree [5] Agree [24] Reply Report Abuse

  • Ronald D, Udupi

    Sat, Nov 11 2017

    Can we expect good roads with such high collection of GST? Government should bring some good regulations to detect politicians and babus swallowing wealth from public works and projects! Bhakthas do not need anything...they just want cow and sawmis winning elections!

    DisAgree Agree [19] Reply Report Abuse

  • Dinesh, Udupi

    Sat, Nov 11 2017

    Its seems like GST is playing trial and error method?

    DisAgree [1] Agree [25] Reply Report Abuse

  • Ronald D, Udupi

    Sat, Nov 11 2017

    Washing machines and air conditioners are no more luxury items, its sheer necessity! FM & PM are not thinking on ground reality!

    DisAgree Agree [26] Reply Report Abuse

  • Astrology predictor, Karnataka/India

    Sat, Nov 11 2017

    Jootley is telling he is a proud member of BHARATIYA JOKERS PARTY (BJP). Again a U turn.

    DisAgree [2] Agree [26] Reply Report Abuse

  • Peter, Bangalore

    Sat, Nov 11 2017

    BJP is towing to the congress line i.e max GST 18%.
    Thanks to Gujarat elections.

    DisAgree [1] Agree [28] Reply Report Abuse

  • JK, Udupi

    Sat, Nov 11 2017

    Good job Modi and team. This will come down again when Number of tax payers are increasing. Taxpayers volume should go up.

    DisAgree [38] Agree [4] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Sat, Nov 11 2017

    Times of India reported that lottery ticket sale in India is reduced from Rs: 40 crores per day to 10 crores after imposition of 28% GST. AC restaurants in Mumbai also said, there is remarkable decline in customers after 18% GST. After, this, many people have started to appreciate their wives' cooking or started ordering biryani and other items from outside. In my area, a Muslim man supplies biryani so good that most of the people stopped going to dine out and for alcoholic beverages, AC restaurants charge 40% more than MRP in Mumbai. One Kg birayani is for Rs:550, that is enough for 12 meals, each serving works out less than Rs: 50. (One Kg biryani means, one kg chicken cooked in one Kg best basmati rice). Ac restaurants, you pay minimum Rs 500 and one beer Rs 200 extra. Thank you Jetley, we are saving lot of money now.

    DisAgree [3] Agree [30] Reply Report Abuse

  • Bengalurian, Bengaluru

    Sat, Nov 11 2017

    It's easy to make biriyani -
    Order Parampara Curry Masala for Biriyani online from Khanapakana or Amazon. Get Dunar Elonga fragrant basmati rice from Pakistan or Royal from India, but the first one is the best. Get a chicken, yogurt & lemon from a local store. Recipe is written at the back of the Biriyani packet.

    DisAgree [1] Agree [17] Reply Report Abuse

  • SMR, Karkala

    Sat, Nov 11 2017

    Now with 178 items slashed to 18% as proposed earlier by Congress, as Indian citizen I would like to question why the PM Modi's government has excluded fuel, real estate and alcohol from ambit of GST so far?
    1. Why do Indians need to pay multiple taxation on those products?
    2. Why the essential commodities need to be still at 18% GST taxation, when most of the consumer base is below the middle class?
    3. Why do the Central government imposed state and Central GST, whereas most of the nation has one single slab for entire nation?
    4. If 18% taxes from the state GST has collected from the state, how much does state gets in return?
    5. Even though 18% GST has reduced most of the commodities, for consumer if state and center added together it will 36%. It means pre GST Indians never use to pay more than 30% for any commodities?
    6. There was no GST on alcohol but people have to pay 12% GST for medicines?
    7. Singapore, which levies only 7% GST and can afford to provide free healthcare services. However, India is unable to provide the same while levying a 28% GST?
    8.Recyclable plastic, an item commonly sold by ragpickers, was taxed 5.5% before but is now in the 18% bracket. How a poor man living on trash will survive?
    It seems as though the Centre does not know how to tackle the economic slowdown and lack of jobs in the country.
    At the party level, two ‘practical’ suggestions have come from BJP’s business friends, especially from centres like Surat. They have suggested soft-pedalling of the ongoing tax raids and Enforcement Directorate notices on lakhs of firms, shell or genuine. This, they have told the BJP chief, had demoralised the business community. The second suggestion is to order an across-board rate cut in the Goods and Services Tax (GST) for the first two years to provide breathing space for traders, and to help them switch over to the white economy.
    Jai Hind

    DisAgree [3] Agree [22] Reply Report Abuse

  • mahesh, Mangalore

    Sat, Nov 11 2017

    First of all, get it off your mind that central govt is deciding GST rates, it's done by the GST council, which has 60% representation from the States.
    And yes ,includes Karnataka and Punjab as well.

    DisAgree [20] Agree [2] Reply Report Abuse

  • Peter, KSA

    Sat, Nov 11 2017

    Mahesh Bhakt, then why BJP was shouting from roof top saying GST and Demonetization is a success and trying to bag the credit as an achievement ? Only solution is to activate senses of blind bhakts and BJP mukt Bharat for an Akhand Bharat. Jai Hind.

    DisAgree [3] Agree [13] Reply Report Abuse

  • SMR, Karkala

    Sat, Nov 11 2017

    Mahesh, Mangalore
    For any argument you need to have sound knowledge of the subject. You 'Bhaktha' ready to sell loved ones kidney for BJP's party funds don't understand the common man's commotion.
    Gentleman, If country is run by 'fake degree' holders who largely depend on social media forwards and fake videos or some pleasing 'mann ki baat' reading scribble handout. If we appoint 'yogi', 'Sanyasi' as Good governance the damage is collateral.
    PM Modi's council is largely driven by 'Niti Aayog' hand picked from RSS school of 'bunch of thought'.

    To your knowledge it is Congress which proposed 18% of GST and single slab. Please think do some research while you comment.
    JaiHind.

    DisAgree [1] Agree [3] Reply Report Abuse

  • Desi Admi, Mangalore

    Fri, Nov 10 2017

    Good job by the Govt for understanding common mans problems and amending. The 'Bangkok Baabu ' will take credit for this, His Chelas are already on the rampage. Sam Pitodar may be writing a speech for Pappu to blurt out tomorrow.

    DisAgree [22] Agree [4] Reply Report Abuse

  • Ahmed K. C., Mangalore

    Fri, Nov 10 2017

    Each election they will slash GST rate.
    It's election time SALE.
    Is cement a luxury?
    Is medicine a optional ?

    DisAgree [2] Agree [28] Reply Report Abuse

  • P. Shirish kumar, Mangalore

    Sat, Nov 11 2017

    Whats your problem. If reduced also your problem & if not also your problem.

    This is the true nature of dictator Congress mentality.

    Last 10 years so much deficit how to recover it? Ask UPA Government why so much deficit during their ruling?

    Wait and see after March 2018, most of the prices will come down including FUEL.

    DisAgree [30] Agree [4] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Fri, Nov 10 2017

    Seems that Gabbar singh is completely choked....!!!!!

    jh
    jai hind.

    DisAgree [5] Agree [49] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Fri, Nov 10 2017

    By the all Hindu's & Hindustani's must take note of the timing...., obviously...., Gujarat election heat is on..., trying to get at least 30 seats..., EVM machines must be technicallly audited...,. other wise FEKUISM may triump....,


    jh
    jai hind...

    DisAgree [12] Agree [48] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    today somebody was complaining about paying 18% gst in hotels, its gone now.
    as far as cement being in 28% slab, it comes demerit items, not luxury items.
    if somebody says washing machine and air conditioner is not a luxury item, then he doesnt know about india.
    lastly sikulars do not know how to react, they cannot appreciate because of thier bias.
    opposition doesnt have any items on GST to attack.

    DisAgree [33] Agree [6] Reply Report Abuse

  • Valerian Dsouza, Udupi/Mumbai

    Fri, Nov 10 2017

    It's ridiculous to tax Paint and Cement @28% at par with SIN goods.
    Air conditioner understandable @ 28% but washing Machine also a Luxury item to tax at 28%?
    If Elected representatives security cost and election spending is curbed, many more items can be brought under 18% and provide relief to middle class.
    Govt and people have to bear in mind, middle class pay 10 to 20% Income tax in addition to 28% GST to cement, paint washing machine etc.
    Over and above, made to pay more than 40% on Petrol, diesel plus Road Taxes, Stamp duty on house etc Just add up all and see, how much taxes collectively we are paying?

    DisAgree [1] Agree [24] Reply Report Abuse

  • Rob Stan, Udupi / US

    Sat, Nov 11 2017

    1. Here everything is 8% - 12%.
    2. Buying a house is very expensive around $300,000 - $600,000 for a middle class, but interest rate is very low & property tax can be claimed at IT returns at the end of the year. Renting is expensive than buying a house if considered in sq. ft, but relocating, maintenance plus point in addition to month to month or year to year payment without any commitment, unlike 15/ 30 years while buying a house. Here some percentage of Americans prefer to rent than buy due to ease of relocation unlike our people.
    3. Medical insurance is very expensive & we need to pay monthly premium, deductible, copay & what not.
    4. Motor Vehicle insurance is also more expensive than buying a car itself. If car is around $300 per month on loan depending on the make & model of the car, insurance also comes around half of that if not having perfect driving history.

    DisAgree Agree [10] Reply Report Abuse

  • vincent, mangalore

    Fri, Nov 10 2017

    election is coming soon.manga madu

    DisAgree [4] Agree [34] Reply Report Abuse

  • Peter, Bangalore

    Fri, Nov 10 2017

    Credit goes to Rahul.

    DisAgree [16] Agree [61] Reply Report Abuse

  • Deva, Pilar

    Fri, Nov 10 2017

    U R 100% correct Sir..

    DisAgree [5] Agree [37] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    pappu, what will you talk now in the campaign now?

    DisAgree [41] Agree [7] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Fri, Nov 10 2017

    Jai Ho Shri Rajulji...., Hindustani log aap ka saath hai....,

    Show abhi bi baaki hai...., Gujarat insult is comming soon ..., 18th Dec...,

    All political party must send technically qualified poll both agents to test electronic voting machine....., other wise the FEKU machine will once again used for GIGO...,

    jh
    jai hind...,

    DisAgree [9] Agree [43] Reply Report Abuse

  • Dr Mohan Prabhu, LL.D, QC, Mangalore (Kankanady)/Ottawa, Canada

    Fri, Nov 10 2017

    In many countries that have GST (or VAT) exempt groceries and uncooked food items from any kind of tax. I wish the GST Council does the same, to relieve the extra burden of tax especially on poor people. Restaurant meals, or readyu-to-serve meals continue to be, and should be, taxed.

    DisAgree [5] Agree [21] Reply Report Abuse

  • David Pais, Mangalore

    Fri, Nov 10 2017

    violation of e.c. code of conduct in reducing g.s.t.

    DisAgree [7] Agree [32] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    complain to the EC.
    let see.

    DisAgree [18] Agree [3] Reply Report Abuse

  • David Pais, Mangalore

    Sat, Nov 11 2017

    e.c. Is rss, cow vigilante.

    DisAgree [2] Agree [8] Reply Report Abuse

  • Jossey Saldanha, Mangalore

    Fri, Nov 10 2017

    From day one I said why do many slabs.
    Keep it simple 😁😁😁

    DisAgree [4] Agree [40] Reply Report Abuse

  • Dev, Mangalore

    Fri, Nov 10 2017

    One step forward & 2 backwards is not a joke on people but killing golden egg laying hen to get more= Greed Satiation Tax.
    Paint & Cement come under either SIN TAX or Luxury Bracket!
    Sanitary Napkins still carry the same tax despite representations from women, it seems "Manuvadis" don't like Women Empowered!
    Washing Machines which are bought by middle class people or both partners working which doesn't cost more than 15 or 20000 is a Luxury Item!
    Does our PM's pet project of providing home to all by 2022 is a joke or jumla? Pushing the people to the brink to sustain themselves & robbing them a opportunity to own a home is the intention?
    Is this a better way to generate more employment by raising taxes so only rich can afford a home is the motive?
    My request either reduce fuel prices & bring down running inflation or see what is in store for you in future elections.

    DisAgree [2] Agree [31] Reply Report Abuse

  • Charles Saldanha, Malad Malwani

    Fri, Nov 10 2017

    Mere Experiments. Nothing else.Yeh nahi to vo sahi.

    DisAgree [3] Agree [24] Reply Report Abuse

  • Zuhair, Udupi/Muscat

    Fri, Nov 10 2017

    Thank u Gujrat elections....

    DisAgree [10] Agree [30] Reply Report Abuse

  • Anticorrupt, Mlr, Kwt

    Fri, Nov 10 2017

    Why are these thieves not talking about GST on petroleum and gasoline products?

    DisAgree [8] Agree [45] Reply Report Abuse

  • ABDUL RAFIQ, Uchila / Udupi

    Fri, Nov 10 2017

    This joker Joot-lie is a so called lawyer doesn't know ABCD of the Economics, lost the election from Amritsar in 2014 has made Finance minister of our country by a uneducated PM. Other than copying the UPA schemes, they did nothing. Both together ruined the country's economy and made the people to come to the footpath. Demonetization and GST are two biggest scams and implemented it for loot the poor people. Because of pressure from Shri Rahul Gandhi, Modi govt had to revise the GST. Earlier Mr. Rahul Gandhi foiled Modi govt's land grabbing attempt also. After Rahul Gandhi's Gabbar Singh Tax jibe on GST, BJP govt totally nervous and they forced to do this change.
    Kudos Shri Rahul Gandhi & Congress party.

    DisAgree [16] Agree [49] Reply Report Abuse

  • Jacob Mendonsa, Bangalore

    Fri, Nov 10 2017

    Still I have to pay 5% GST on Idlies & Wadas which was not applicable before introducing GST!

    DisAgree [5] Agree [48] Reply Report Abuse

  • Bengalurian, Bengaluru

    Fri, Nov 10 2017

    It's better to make idlis at home. Mangalorean home idlis are better in taste & smoothness than Bangalorean idlis. Wadas can be ordered from the restaurant which brings down the GST to 2.5%.

    DisAgree [14] Agree [5] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    It was there before as well, only wasnt reflecting in the bill.
    it was taxed as VAT.

    DisAgree [20] Agree [5] Reply Report Abuse

  • ABD, LOS ANGELES

    Fri, Nov 10 2017

    GOOD MOVE BY BJP GOVERNMENT

    DisAgree [67] Agree [18] Reply Report Abuse

  • Hamdan, Udupi/Dubai

    Fri, Nov 10 2017

    Haha......... election effect. Now Bhakts will start praising

    DisAgree [10] Agree [50] Reply Report Abuse

  • Alwyn, Mangalore

    Fri, Nov 10 2017

    BJP is fooling Indians. They increase prices and during the electon time they bring it down to get the vote. Very cunning political party in the world.

    DisAgree [10] Agree [64] Reply Report Abuse

  • Deva, Pilar

    Fri, Nov 10 2017

    People know it 100% increase and 50% discount it's like buy 1 get 1 free .. result will benefit Gabbar Singh's Party i mean great Rahulji...

    DisAgree [4] Agree [13] Reply Report Abuse

  • geoffrey, hat hill

    Fri, Nov 10 2017

    Thanks to Rahul Gandhi for defying Gabbar Singh Tax. Mindless actions always result in U turns

    DisAgree [11] Agree [68] Reply Report Abuse

  • Mohandas Kumar, Mangalore

    Sat, Nov 11 2017

    Also Tamil super hit Vijayan Picture Mersal effect....

    DisAgree [1] Agree [8] Reply Report Abuse

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Title : GST slabs on 178 items slashed to 18% from Nov 15, eating out gets cheaper


 
 
 
 

 
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