GST on daily use items cut to 18% from highest slab of 28%
New Delhi: The all-powerful GST Council at its meeting today in Guwahati decides to keep only 50 items, mostly demerit, sin and luxury goods in the top 28 per cent bracket.
A lower 18% GST will be levied on chewing gums, chocolates, aftershave, deodorant, washing power, detergent and marble, Bihar deputy Chief Minister Sushil Modi said.
In effect, the council, in its 23rd meet today, cut rates on 177 goods.
The Goods and Services Tax (GST), implemented “from July 1, has five tax slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.
“There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items,” Modi said.
He said all types of chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo deodorants, washing powder detergent and granite and marble will attract lower 18 per cent tax rate.
“There was unanimity that in 28 per cent category there should be only sin and demerit goods.
So, today the GST Council took a historic decision, that in the 28 per cent slab there will be only 50 items and the remaining items have been brought down to 18 per cent,” he said.
Paints and cement have been retained in the 28 per cent tax bracket, he said.
“Luxury goods like washing machines and air conditioners have been retained at 28 per cent.”
The decision taken by the GST Council will have a revenue implication of Rs 20,000 crore annually.