The GST Council pruned the list of items attracting the top 28% tax rate to just 50 from 227 previously, thus cutting rates on 177 goods.
The GST Council has reduced the tax rate on a wide range of widely-consumed items to 18% from current 28%. The council reduced the list of items attracting the top 28% tax rate to just 50 from 227 previously, thus cutting rates on 177 goods.
The GST has five tax slabs of 0%, 5%, 12%, 18% and 28%.
All types of chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo deodorants, washing powder detergent and granite and marble will attract a lower 18% tax rate.
“There was unanimity that in the 28% category there should be only sin and demerit goods. So, today the GST Council took a historic decision, that in the 28% slab there will be only 50 items and the remaining items have been brought down to 18%. Luxury goods like washing machines and air conditioners have been retained at 28 %,” , Bihar deputy chief minister Sushil Kumar Modi said.
Paints and cement have been retained in the 28% tax bracket.
The decision taken by the GST Council will have a revenue implication of Rs 20,000 crore annually. “There is consensus that slowly 28% slab should be brought to 18%. But it will take some time because it has a big revenue implication,” Sushil Kumkar Modi said.