GST Council cuts rate on 100 items; simplifies return filing


New Delhi, Jul 22 (PTI): The GST Council cut rates on over 100 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy.

The highest tax bracket of 28 per cent has been rationalised further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium ion batteries, being lowered to 18 per cent. The revised tax rates will come into effect from July 27.

"Every state wanted that the rates on these items be lowered so that the middle income households are benefitted ... It has also been decided that the GST Council will rise above revenue consideration and focus more on job creation and economic growth," Finance Minister Piyush Goyal said.

Refrigerator, washing machine, small screen TV, storage water heaters, paints and varnishes, will henceforth attract 18 per cent GST as against 28 per cent at present.

Tax rate on ethanol has been slashed to 5 per cent from 18 per cent at present.

Footwear costing up to Rs 1,000 will now attract 5 per cent GST. So far, footwear up to Rs 500 attracted 5 per cent GST, and those having retail sale price of over Rs 500 attracted 18 per cent rate.

Sanitary Napkins, which attract 12 per cent tax, and fortified milk, which was taxed at 18 per cent, have been exempt from the new indirect tax.

Also idols made of stone, marble, wood, rakhi not embedded with stone, phool jhadu, sal leaves, too have been exempted.

In his first GST Council meeting since he took charge as the Finance Minister in May this year, Goyal also allowed businesses with turn over of up to Rs 5 crore to file quarterly returns -- a move which will benefit 93 per cent of the GST registered taxpayers. They will have to, however, pay taxes monthly.

So far, businesses with turnover of up to Rs 1.5 crore were permitted to file returns quarterly.

"Today's meeting has taken a number of decisions unanimously. Simplification and rationalisation has been given maximum priority," Goyal said while briefing reporters after the 28th GST Council meeting here.

Asked about the revenue impact of the tax rate cut, Goyal said it will only be "nominal".

"With simplification, there will be compliance buoyancy and the overall assessment will show that the revenue impact is marginal," he said, adding the revenue foregone is for the good of consumers.

Sources, however, said the tax rate reduction is likely to cost around Rs 8,000-10,000 crore annually to the exchequer.

In the services sector, the hotel industry too has been given major relief as GST on accommodation service will now be based on transaction value instead of declared value.

GST at the rate of 28 per cent in levied if hotel room rent exceeds Rs 7,500. Between Rs 2,500 to below Rs 7,500 GST is levied at 18 per cent and that of Rs 1,000 and below Rs 2,500 it is 12 per cent.

Also, the tax rate on supply of e-books has been cut to 5 per cent from 18 per cent.

Union Minister Arun Jaitley said the rate reduction will go a long way in pushing productivity upward.

"This is a major step towards rationalising the 28 per cent tax slab, which has been narrowed to only a few commodities in the past 13 months," Jaitley tweeted.

The Council has also decided to defer implementation of reverse charge mechanism (RCM) by a year to September 30, 2019. The RCM, which was already on hold till September 2018, is considered as an anti-evasion tool.

The Council has also cleared over 40 amendments, including increasing threshold for composition scheme to Rs 1.5 crore and allowing multiple registration for businesses, to the GST law.

The next meeting of the Council is slated on August 4, which will discuss issues relating to the MSME sector as well as ways to incentivise digital transaction via Rupay cards and BHIM app.

A Committee led by Bihar Deputy Chief Minister Sushil Modi will look into ways to promote digital payments using these modes.

Also a chance will be given till August 31 for businesses to migrate to the GST regime and late fee would be waived, Goyal said.

EY Partner Abhishek Jain said: "Reduction in ethanol GST rate for use by oil companies is welcome as major petroleum products are outside GST, and this should help reduce their cost".

This is the fourth time since the roll out of the GST that the Council, chaired by Union Finance Minister and comprising state counterparts, has rationalised rates.

In its meeting in November last year, the Council had reduced rates in over 178 items in the 28 per cent tax bracket.

  

Top Stories

Comment on this article

  • Truth Teller, Karnataka

    Mon, Jul 23 2018

    Sincere people will not do this type of election Jumla!. Since one and half years people are requesting to simplify GST and they had kept pending to do when elections are nearing!. I expect many more such things in the coming days and bakhts will chant namo namo.......

    DisAgree [1] Agree [2] Reply Report Abuse

  • Vincent Rodrigues, Bengaluru/Katapadi

    Mon, Jul 23 2018

    This is nothing but lure the voters by offering these concession for the fast approaching parliament election

    DisAgree [2] Agree [1] Reply Report Abuse

  • Monu, Mangalore

    Mon, Jul 23 2018

    Fantastic move by the govt.
    Mera Bharath Mahan.

    DisAgree [2] Agree [2] Reply Report Abuse

  • SMR, Karkala

    Mon, Jul 23 2018

    The Congress party’s demand to cap the Goods and Services Tax (GST) standard rate at 18 per cent . BJP Arun Jaitley who once said his party will create new India with one tax, one market, one nation and brushed aside the Congress proposal single slab of 18% saying illogical is now lately realised it.

    Before the Gujarat and Karnataka elections we have seen some goods GST has slashed. Now elections to five states assemblies were BJP in ruling made them twice to reduce nearly 200 items including the 'Lahu ka Langan' on sanitary napkins which BJP consider luxurious item bracket and taxed 12%.

    When GST rate is capped at 18%, this Govt would have learnt its lesson belatedly. If GST is a 'victory of integrity' and 'celebration of honesty', why did the BJP oppose it and stall it for 5 years which cost India 12 lakh crores?

    GST Collection Falls to Rs 85,174 Crore in Feb as Only 69% File Returns. The collection in January was Rs 86,318 crore, while in December and November was Rs 88,929 crore and Rs 83,716 crore respectively.
    With an estimated Rs 20,000 crore exporters' refund still stuck and GST return falling and mounting anger of small traders anger promted BJP to think Congress 18% GST bracket?

    Jai Hind

    DisAgree [1] Agree Reply Report Abuse

  • Rathan, Mangalore

    Mon, Jul 23 2018

    Smr
    Under your khangress there was no provision of nil and 5or 12% items everything was18% further the state share was also less compare to present GST. If the present GST is not good how come all non BJP including ur sickular khangress agreed to implement? That shows the ability of MODI govt sab ka saath sab ka vikas

    DisAgree Agree [2] Reply Report Abuse

  • Deva, Pilar

    Sun, Jul 22 2018

    Now we can expect Scrapping of GST months before 2019 to get more v.....................................

    DisAgree [3] Agree [8] Reply Report Abuse

  • David Pais, Mangalore

    Sun, Jul 22 2018

    chaiwala's election stunt. people r knowing his crookedness

    DisAgree [2] Agree [9] Reply Report Abuse

  • Cyril, Mangalore

    Sun, Jul 22 2018

    What about petrol,
    Is it just before election..!!

    DisAgree [1] Agree [8] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Sun, Jul 22 2018

    While we need to appreciate the reduction being brought in GST rates, especially on sanitary napkins, we feel sorry to see that the Government is not at all considerate to the poor farmers. It was expected that at least a few items used by the farmers would be considered for reduction of GST now. The main problem is none in the GST council seems to have any grasp of the farmers problems to find an ever lasting solution. The only thing known is waiver of loans? Is it the only thing that matters ..

    DisAgree [2] Agree [10] Reply Report Abuse

  • mohan, Mangalore

    Sun, Jul 22 2018

    What people will.say to this.......just fooling people by giving one bubble gum..... like kids... .. chapte raho...

    DisAgree [1] Agree [8] Reply Report Abuse

  • Clifford, Mangalore

    Sun, Jul 22 2018

    This man should have been finance minister instead of Kidney Troubled man from the first day of NDA...

    DisAgree [2] Agree [10] Reply Report Abuse

  • Chundi Chaddi, Mangalore

    Sun, Jul 22 2018

    Thank you Modi, Thank you Piyush Goyal for reducing GST rate on all our luxury items. Please consider lowering the rate on our luxury cars and our expensive bungalows. Increase the tax for law abiding, hard working, tax paying comman man towards cow welfare and protection as we are the care takers of cows of the country.

    DisAgree [1] Agree [12] Reply Report Abuse

  • Valerian D'Souza, Udupi / Mumbai

    Sun, Jul 22 2018

    This is a good step.
    Cost of living was very high due to high incidence of taxes like GST.
    From when simplification of filing will take place?
    In 1 (one) return, in separate pages, state wise return information provision should be made to ease further.
    GST on Paint is reduced, good! What about the rate of Cement?
    Is cement still taxed at 28%, the rate at par with other sin goods?
    It's high time, cement rate is reduced to bring down cost of construction of houses which is basic need of people!

    DisAgree Agree [7] Reply Report Abuse

  • JML Joseph, Mangalore

    Sun, Jul 22 2018

    At long last they have shown some sanity.

    It's almost exactly what the Doctor (Congress) had ordered in the first place.

    Now what remains is when will Petro Products be Finally brought under GST ?

    Probably just when the Polls are around the corner, so that they get some sympathy votes.

    The people are fed up and just waiting for a chance to throw this incompetent Govt to the Dustbin out of the Treasury Benches and to the Opposition where they really belong .

    DisAgree [2] Agree [12] Reply Report Abuse

  • Rathan, Mangalore

    Sun, Jul 22 2018

    JML
    Your doctor has told all items will be 18%i clouding food grains and no question of 0%5%12%
    If we r under the treatment of such doctor patient would have died long back

    DisAgree [7] Agree [4] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Jul 22 2018

    Finally they heard us ...

    DisAgree [4] Agree [15] Reply Report Abuse

  • Sampath, India

    Sun, Jul 22 2018

    Bolo ..jai Modi...

    DisAgree [17] Agree [11] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Jul 22 2018

    We have to tell him what to do ...

    DisAgree [5] Agree [18] Reply Report Abuse

  • Nawaz, Udupi/ Kuwait

    Sun, Jul 22 2018

    @Sampath,

    Yes. When BJp collects very high tax by imposing unrealistic GST rates, then also Jai Modiji.

    When BJp reduces GST because of election fever , then also Jai Modiji.

    Bhakth ka jawab nahin.

    DisAgree [5] Agree [10] Reply Report Abuse

  • Thomas, Udupi

    Sun, Jul 22 2018

    They are not, only for 2019 vote bank.

    DisAgree [2] Agree [14] Reply Report Abuse


Leave a Comment

Title: GST Council cuts rate on 100 items; simplifies return filing



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.