Only 62 items likely to stay in 28% GST slab

1. Business Standard Only 62 items likely to stay in 28% GST slab About three-fourth items in the highest tax slab may move to lower brackets

2. Those planning to buy new furniture or refit electric switches might have to pay less after Friday, as the GST (goods and services tax) Council is likely to slash the indirect tax rates on these items at its meeting in Guwahati. At present, these attract 28 per cent tax. As many as 165 such items could be moved to the 18 per cent category, with only 62 attracting the highest rate. Those retained in the highest category could include digital cameras, shaving creams, paints and varnishes, cigars, pan masala, chocolates, cosmetics, vacuum cleaners, refrigerators, washing machines, hair conditioning items, hair dyes, and marble and granite. Some common items might also have their rates slashed from 18 per cent to 12 per cent, as demanded by states such as West Bengal. At the Friday meeting, the Council will also have a presentation about the inclusion of real estate under the new indirect tax regime. Reducing the compliance burden on taxpayers would be a part of the exhaustive agenda. If these suggestions of the “rate-fitment committee” are accepted, it would be the biggest rejig of rates since the GST roll-out on July 1 this year. Many common goods, which make up 75 per cent of the highest GST slab, will become cheaper. “This will be a big relief for consumers and industry. It is to be seen if all states accept it,” said a government official on condition of anonymity. Over 1,200 products and services were fitted into one of the four tax slabs — 5, 12, 18, and 28 per cent — before the roll-out. A state government official said there would be some discussion on trimming of items in the 28 per cent slab. “Some rules need to be formulated on rate reduction. It can’t be done by the fitment committee alone. There needs to be some basis for that,” said the official.

3. Also Read : GST Council Likely To Slash Tax Rates On 80% Items In Top Slab: Sushil Modi Finance Minister Arun Jaitley had said at an event on Tuesday that some of the items should never have been in the 28 per cent slab. The GST Council in the last three or four meetings has reduced rates on over 100 items, bringing them down either from 28 per cent to 18 per cent or from 18 per cent to 12 per cent. A finance ministry official said initially items that had attracted 12.5 per cent central excise and 14.5 per cent value-added tax (VAT) were “mechanically” put in the 28 per cent slab. A presentation will be made on the inclusion of real estate in the GST. The approval of states is key as stamp duty and registration fees on property are the exclusive domain of states according to law and will need an amendment in the Indian constitution……..read more