Government Reduces GST rates on 27 goods and 12 services – Here is list of everything that got cheaper
Ever since GST was introduced on 1 July 2017, it has been one of the major concerns among most of the businessmen. 3 months after rolling out GST, the new taxation system, the Council headed by the Finance Minister of India, Arun Jaitley has announced major cuts in taxes on various items.
After facing consistent criticism on Goods and Service Tax (GST) from traders, small and medium enterprises, the tedious compliance burden under the new Good and Service Tax system has finally been made simpler through revisions. As per the Prime Minister, Narendra Modi, the new recommendations on the GST system will immensely help small and medium businessmen.
Complete list of changes in GST slabs
5% category include most items of common consumption.
- ITEMS UNDER 5% GST RATE
|Items||Old rate||New Rate|
|Unbranded ayurvedic medicine, homeopathy medicine||12%||5%|
|Khakra and plain chapati||12%||5%|
|Sliced Dried Mango||12%||5%|
|Paper waste or scrap||12%||5%|
|Package food given to economically weaker sections||18%||5%|
|Plastic, rubber waste, parings and scrap||18%||5%|
|hard rubber waste or scraps||28%||5%|
|Duty credit scrips||5%||NIL|
12% category majorly relieved the Textile industry wherein the tax on man made yarn was reduced from 18% to 12%
ITEMS UNDER 12% GST Rate
|Items||Old Rate||New Rate|
|Man made yarn for textile sector||18%||12%|
|Sewing thread of manmade filaments||18%||12%|
|Synthetic artificial filaments, manmade staple fibre yarns||18%||12%|
18% category included sanitary items, stone used for flooring (except granite and marble), diesel engine parts and pump parts.
ITEMS UNDER 18% GST Rate
|ITEMS||Old Rate||New Rate|
|Stone used for flooring||28%||18%|
|Diesel Engine part||28%||18%|
Eating out could be cheaper
There is high probability that eating out might get cheaper after the GST council agreed to reduce the rates from 18% to 12% . This possibility shall be considered after the panel submits the reports on tax on AC restaurants in 2 weeks.
10 Takeaways from the GST Council meet
- Exporters to get IGST relief for 6 months
- SMEs with annual turnover of 1.5 crore will be allowed to file quarterly returns.
- E-Wallet gateway will be developed and introduced after 6 months.
- Group of ministry to decide on bringing down the rate for AC restaurants to 12%
- Reverse charge mechanism suspended till March 2018
- Petroleum product remains outside the ambit of GST
- The composition scheme net has been widened to taxpayers with turnover up to Rs 1 crore from the earlier limit of Rs 75 lakh. 1% tax will be applicable on traders under the composition scheme.
- Government to deposit a notional amount as advance refund in the e-wallets for exporters.
- For July exports, refund cheques will be processed by October 10 and for August exports, refund cheques will be processed by October 18.
- 2% tax will be applicable on manufacturing companies under composition scheme while 5% tax will be applicable on restaurants under the same scheme.
As said by Prime Minister, Modi –
GST gets better and simpler. pic.twitter.com/F1h2tKrUsz
— Narendra Modi (@narendramodi) October 8, 2017
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