AMN / Guwahati
UNION Finance Minister Arun Jaitley on Friday said the GST council has decided to bring down tax rates from 28 per cent to 18 per cent on 177 items. Jaitley added that the GST council decided in its 23rd meeting that rates on 13 items will be brought down from 18 per cent to 12 per cent. Similarly, 6 items were moved from tax bracket of 18 percent to 5 per cent.
He said that a universal rate of 5 percent will be levied on all restaurants, except five star restaurants. Presently, the non-AC and AC restaurants are charged at the rate of 12 percent and 18 per cent respectively. Jaitley said the rates will be applicable from November 15.
Addressing the media persons, Finance Secretary Hasmukh Adhia said filing of return for 3B will be continued until March. All taxpayers will continue to file 3B till March 2018. Adhia added that if there is a nil return to be filed then late filing penalty will be reduced to Rs 20. For others it has been reduced to Rs 50
Earlier, Commodities of daily use like washing powder, aftershave cream, detergent, chocolate got cheaper as the GST Council has decided to keep only 50 items in the top tax bracket of 28 per cent. The decision was taken at a ‘close-door’ meeting of GST Council in Guwahati on Friday.
The changes in GST slabs come amid complaints from traders across the country that the new tax regime has added to their burden.
Our Correspondent reports
The Goods and Services Tax (GST) Council has announced major changes in the new national law, reducing tax rate on a wide range of products. After the Council’s meeting in Guwahati yesterday, Finance Minister Arun Jaitley said, tax on 178 items has been reduced to 18 per cent from 28 per cent and only 50 items now remain in the highest tax slab of 28 per cent.
Dining out will also become cheaper, now as the Finance Minister said that the Council has decided that food at all restaurants in the country, except those in starred hotels, will be taxed at 5 per cent rather than 18 per cent, without the Input Tax Credit (ITC).
The new rates will be effective from the 15th of this month.
Prime Minister Narendra Modi has hailed the Council’s decisions. In a series of tweets, Mr Modi said, the recommendations made by the Council will further benefit the citizens and add strength to the GST. He said, the recommendations are in spirit of the continuous feedback that the government is getting from various stakeholders on GST. The Prime Minister said, people’s participation is at the core of his government’s working adding that the Centre is working tirelessly for the country’s economic integration through GST.
