Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

GST on common use goods might be slashed down

GST On Common Use Goods Might Be Slashed Down

The all-powerful GST Council may consider lowering Tax Rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo, and simplify return filing rules in its meeting this week.

**advertisement**

The Council, headed by Finance Minister Arun Jaitley, is scheduled to meet on November 10 to consider lowering of the 28 per Cent GST rate on certain common use items, government officials said. In further relief to small and medium enterprises, the panel is likely to rationalise tax rate in sectors where the total incidenceof taxation has gone up because the goods were earlier either exempt from excise or was attracted lower VAT rates in the previous indirect tax regime.  The Council has been meeting every month since the Goods and Services Tax (GST) regime, which amalgamated over a dozen central and state taxes, was introduced on July 1. The meetings have resulted in an array of changes to ease compliance burden on businesses as well as provided relief to consumers.

“A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked,” an official said.  All types of furniture attract a 28 per cent tax under GST. Wooden furniture is handmade by unorganised sector artisans and is mostly used by middle-class families and there have been demands for lowering tax incidence on them.

Also, some items of plastic attract 18 per cent GST but goods like shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28 per cent levy. There is a need for rationalisation of tax rates on these items. The GST Council, which comprises of representatives of all states, have already rationalised tax rates for over 100 items.  The Council has last month approved an Approach Paper to be followed by the fitment committee while deciding on future rate revisions.  Under GST various goods and services have been bracketed in 5, 12, 18 and 28 per cent.  GST has subsumed over a dozen taxes, including excise, service tax and VAT, and transformed India into a single market.

**advertisement**

50


This post first appeared on News On Screen, please read the originial post: here

Share the post

GST on common use goods might be slashed down

×

Subscribe to News On Screen

Get updates delivered right to your inbox!

Thank you for your subscription

×