Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Council to Consider Slashing of 28 Percent GST on Common Use Goods

In further relief to small and medium enterprises, the panel is likely to rationalise tax rate in sectors where the total incidence of 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.

PTI

Updated:November 5, 2017, 9:16 PM IST
facebookTwitterskypewhatsapp
Council to Consider Slashing of 28 Percent GST on Common Use Goods
In this file photo, a man walks past a banner during a protest by traders against the implementation of the Goods and Services Tax (GST) in Delhi . (REUTERS/Adnan Abidi)
Loading...

New Delhi: 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.

The Council, headed by Finance Minister Arun Jaitley, is scheduled to meet on November 10 to consider lowering of the 28 percent 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 incidence of 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 introducedon 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 percent tax bracket is expected. Most of the daily use items could be lowered to 18 percent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked," an official said.

All types of furniture attract a 28 percent 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 percent 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 percent levy.

There is a need for rationalisation of tax rates on these items, officials said.

The plastic manufacturers in their representation to the revenue department had said that 80 percent of the industry is in MSME category.

Besides, the GST rate on weighing machines, compressors may also be rationalised to 18 per cent from 28 percent. Officials said 90 percent of the manufacturers are from small and medium industries who in the pre-GST era were exempt from excise duty on manufactured value of less than Rs 1.5 crore. Hence, such machines only attracted VAT of 14.5 percent.

With regard to compressors, the total pre-GST incidence was 17.5 percent (12.5 percent excise duty and 5 percent VAT), they said stressing on need to rationalise the tax incidence.

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 percent.

GST has subsumed over a dozen taxes, including excise, service tax and VAT, and transformed India into a single market.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Bijaya Das
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
HDFC 2,049.30 3.78
Maruti Suzuki 6,591.95 10.39
ICICI Bank 417.50 7.99
HDFC Bank 1,199.60 8.95
Reliance 1,254.35 6.39
Company Price Change %Gain
Astral Poly Tec 1,213.70 5.25
HDFC 2,052.10 3.92
SBI Life Insura 815.85 1.73
Zee Entertain 301.10 -2.49
Maruti Suzuki 6,585.25 10.89
Top Gainers
Company Price Change %Gain
Eicher Motors 17,860.20 13.38
Hero Motocorp 2,862.90 13.06
IndusInd Bank 1,419.60 10.71
UltraTechCement 4,269.65 10.43
Maruti Suzuki 6,591.95 10.39
Company Price Change %Gain
Hero Motocorp 2,866.50 13.19
Maruti Suzuki 6,585.25 10.89
IndusInd Bank 1,419.60 10.74
Bajaj Finance 3,705.60 10.19
SBI 301.70 10.09
Top Losers
Company Price Change %Gain
Power Grid Corp 196.20 -2.46
Zee Entertain 301.40 -2.41
Infosys 805.00 -1.91
TCS 2,065.45 -1.74
NTPC 119.85 -1.52
Company Price Change %Gain
Power Grid Corp 196.35 -2.39
Infosys 805.10 -1.94
TCS 2,065.60 -1.74
NTPC 119.90 -1.52

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results