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New Delhi, July 22
The GST Council has pruned the 28% slab by cutting tax rates on 191 goods over the past one year, leaving just 35 items, including AC, digital camera, video recorders, dishwashing machine and automobiles, in the highest tax bracket.
There were around 226 goods in the 28% category when Goods and Services Tax (GST) was implemented on July 1, 2017. Over the past one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates on 191 items.
The 35 goods, which will be left in the highest slab once the new GST rates are implemented from July 27, also include cement, automobile parts, tyres, automobile equipment, motor vehicles, yachts, aircraft, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.
Experts said going forward as the revenues stabilise, the Council may look at further rationalisation of the 28% slab, to restrict the highest tax slab to super luxury and sin goods.
Deloitte India Partner MS Mani said it would be logical to expect that once the GST collection after the recent reductions stabilises, the remaining items such as TVs of all sizes, dishwashers, digital cameras, ACs could be considered for an 18% rate. It would be ideal if only demerit goods are retained in the 28% slab. — PTI
India Inc hails decision
The decisions relating to simplification of returns and especially keeping the interests of small taxpayers are noteworthy. This would facilitate ease of doing business both for small and large taxpayers. the decisions would increase compliance, widen the tax base and are in the right direction to achieve the objectives of GST. Rashesh Shah, FICCI President
Relief on 191 items
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