The Goods and Services Tax (GST) Council, which has been holding its two-day meeting in Guwahati, reduced the tax rate of almost 175 items from 28 per cent; however, 50 luxury and "sin" goods, including tobacco, will remain in the highest slab, according to media reports on Friday. He is attending the 23rd meeting of GST Council today in Guwahati.
New DelhiWith the Goods and Services Tax (GST) slashed for over 200 items, the decision that has foodies in Delhi elated is the reduced rates for AC restaurants, which could make eating out cheaper. "Tax on goods of mass consumption like chewing gum, chocolates, shaving items, shampoo, skin creams, whose revenue implication is not much, has been reduced", Modi told reporters on the sidelines of the Goods and Services Tax (GST) Council meet. The GST Council is also expected to offer more relief to small and medium enterprises due to compliance burden. GST rates for all restaurants will be 5 per cent from now on.
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The rate of GST in case of eight items have been reduced to five per cent from existing 12 % and in case of six items it has been reduced to nil from existing six per cent.
"When GST rate is capped at 18 per cent, this government would have learnt its lesson belatedly". Value Added Tax (VAT) will continue to be charged for alcohol, which does not fall under GST.
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The GST Meeting also decided that there will no benefit of input tax credit for restaurants. Earlier the structure had 12 per cent GST rate for non-AC and 18 per cent for AC restaurants, while five-star properties were levied with 28 per cent GST rate. Sushil Modi said like demonetization, GST too aimed at "achieving a clean, transparent and honest economy" and claimed "the common people have no problems with the new tax regime per se". "The facility to revise Form GST TRAN-1 declaration has been introduced on the GST Portal for taxpayers who had already filed it prior to November 9, 2017", GSTN said in a statement.
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