Government Slashed G.S.T From 28% – 18 % on more than 178 Items.
Jamshedpur 11 November : The G.S.T council on friday moved 80% of items in the top 28% tax bracket to 18% tax bracket.
Only 50 products, classified as sin or luxury items like tobacco products, aerated drinks and automobiles, will be in the top GST rate bracket of 28 per cent. When GST was rolled out on July 1, more than 250 items were in the highest tax bracket. That’s a reduction of 80 per cent in the number of items in just 132 days. The total tax on several products still in the highest slab will be higher than 28 per cent since they also attract a cess.
The rate cut is prospective and will be applicable from November 15 after the Centre and states issue notifications.
Prime Minister Narendra Modi said the recommendations made by the GST Council will further benefit the people and add strength to the tax regime.
“These recommendations are in spirit of the continuous feedback we are getting from various stakeholders on GST,” the prime minister tweeted.
Eating out is set to get cheaper with the council deciding to slash GST rate for the sector to 5 per cent without any input tax credit. Restaurants, at present, face three rates depending on the category they are in.Air-conditioned restaurants face 18 per cent tax with input credit while non-air-conditioned ones pay 12 per cent .The group of ministers looking into the taxation for the sector had recommen .