GST rate on mass consumption items cut to 18 percent


New Delhi, Nov 10 (PTI): The GST Council today decided to reduce tax rate on a wide range of mass use items - from chewing gums to detergents -- to 18 per cent from current 28 per cent, Bihar Deputy Chief Minister Sushil Kumar Modi said.

The all-powerful council pruned the list of items attracting the top 28 per cent tax rate to just 50 from 227 previously, Modi told reporters here.

In effect, the council, in its 23rd meet today, cut rates on 177 goods.

Facing intense heat from opposition-ruled states over keeping mass used goods in the 28 per cent bracket which was meant for luxury and de-merit goods, the Council pruned the list to 50 as against 62 that was recommended by its fitment committee.

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.

"There is consensus that slowly 28 per cent slab should be brought to 18 per cent. But it will take some time because it has a big revenue implication," he said.

  

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Comment on this article

  • Quadros, Kundapur

    Fri, Nov 10 2017

    Government could have taken some more time to implement GST and consulted some of the best brains in the profession, instead of hurriedly pushing down the throat of citizens and see if they can swallow, on trial and error basis. Meeting every month or two to decide on next course of action on either to reduce or increase shows total unprofessional ism and immaturity of the Government.

    DisAgree Agree [9] Reply Report Abuse

  • Dev, Mangalore

    Fri, Nov 10 2017

    It seems the government at center has no idea about implementation part of GST.
    Congress being the pioneer in this field who initiated this tax had requested Arun Jaitley to limit the same to 18%, but he didn't listen & this tamasha of one step forward & 2 steps backward actions.
    Now traders have to recalculate & re plan all their systems to suit these knee jerk reactions of the government.
    It clearly shows the center is more concerned about winning Gujarath poll than welfare of people in mind when taking these decisions.
    Paint & Cement attract 28%, is it sin to build a home or use paint or does it come under luxury bracket?
    Washing machines attract the same as it is luxury item! From which angle it is luxury when a fully automatic washing machine can be bought for 15 to 20 thousand?
    Does the govt., think by doing this it creates more job opportunities or hinders the same?
    Does the policy helps common man to get his own home or apartment by pushing its value more?
    Does PM remembers HOME For All by the year 2022 is it Dream or one more Jumla?

    DisAgree Agree [13] Reply Report Abuse

  • Ahmed K.C., Mangalore

    Fri, Nov 10 2017

    There was a VAT of 5.5% on Medicines prior to GST. After implementation of GST it's charged @ 12% including Jan Aushadi Medicines meant for poor. What a blunder ???

    DisAgree [2] Agree [19] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    Now what will pappu talk about in campaign?

    DisAgree [19] Agree [3] Reply Report Abuse

  • Sheikh, Karkala

    Fri, Nov 10 2017

    It is Pappu effect. Who had strongly condemned GST. This is feku’s new tactics keeping Gujarat election in mind. This clearly shows he has admitted his mistake.

    DisAgree [1] Agree [12] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Fri, Nov 10 2017

    Near my residence in Mumbai, a new bldg. is being built. Since our bldg. is old, some members of our society went to enquire. The rate quoted by builder is Rs 18375 per sft and the basic cost of 2 bed room flat works out about 1.18 crore. The biggest problem is with GST, Stamp duty, registration and other govt related items, Rs 28 lakhs additional expenditure is explained by builder, Total is 1.46 crores. But, in Mumbai, there is govt's ready reckoner rate. and the tax is based on actual or govt rate, whichever is higher. Since govt rate is Rs 25000 per sft, the tax component works out to Rs 38 lakhs and total is 1.56 crores. One can imagine, if the person has base amount, he will just have to take loan for the tax component and pay EMI till he retires. What a cruel state o affairs ! Tax was there before also, but now it is skyrocketed.

    DisAgree [1] Agree [12] Reply Report Abuse

  • sri_elder, Karkala

    Fri, Nov 10 2017

    Government valuation itself is too high.
    But this can be solved by making a request to chief minister. Make a request to reduce it to 15,000/- per square feet.
    Probably request may go through since people government in the state!
    In that case people save 10 lacks.

    DisAgree [7] Agree [1] Reply Report Abuse

  • sampath, India

    Fri, Nov 10 2017

    gabbar singh ka chela pappu kaha hai ? Don ko sikaana mushkil hi nahi na mummkin hai....

    DisAgree [18] Agree [2] Reply Report Abuse

  • Jeevan, Mangalore

    Fri, Nov 10 2017

    IT SHOULD be below 10%. If we take loan from bank it's 9%. Eating in restaurents 18%.

    WHO is the FOOL WHO made gst implementation

    DisAgree [4] Agree [20] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    Loan and tax are two different things...

    DisAgree [12] Agree [4] Reply Report Abuse

  • Desi Jawan, Mangalore

    Fri, Nov 10 2017

    Welcome move by Modi Govt.

    Whenever new rules and regulations are introduced they find some short comings always and a corrective action is required. This what happened in this case too.

    DisAgree [19] Agree [10] Reply Report Abuse

  • Mark Dcruz, Mangalore

    Fri, Nov 10 2017

    The government already looted 95000 crores through GST in first quarter

    DisAgree [6] Agree [25] Reply Report Abuse

  • sri_elder, Karkala

    Fri, Nov 10 2017

    Earlier VAT was there...
    Did you mean you had 0% tax and people would have saved 95k crores?
    One or the other way one needs to pay indirect tax. No relief... Poor person like you cannot understand..

    DisAgree [25] Agree [7] Reply Report Abuse

  • Mark Dcruz, Mangalore

    Fri, Nov 10 2017

    Oh really ? I think you are the only knowledgeable person on this forum..
    You have one of the best brains ..
    If they have reduced taxes means they are going under loss ..

    DisAgree [5] Agree [13] Reply Report Abuse

  • sri_elder, Karkala

    Fri, Nov 10 2017

    I remember service tax of 8.75% on telephone bill. It was gradually increased on each budget by your MMS and chidu and it reached 14.5%. Now it it is deducted at 18% on 120 plus services.
    I think that's the only negative thing. Government should consider bringing it down to 12% and carry on...
    Rest all the things are fine...

    DisAgree [8] Agree [3] Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    It looks like you have no idea of the taxation system.
    There vat, central excise,state excise etc ...
    GST is tax neutral regime

    DisAgree [9] Agree [1] Reply Report Abuse

  • mahesh, Mangalore

    Fri, Nov 10 2017

    95000 crore is tax collected... 50% is state GST.
    Also out of the central GST, half of it will go to the states again..
    So the majority of collection will go to the states...

    DisAgree [11] Agree [1] Reply Report Abuse

  • ABDUL RAFIQ, Uchila / Udupi

    Fri, Nov 10 2017

    Kudos Shri Rahul Gandhi & Congress party. Finally Modi govt bowed down to opposition parties. Modi totally scared of losing election. Even Modi's land grabbing plan was also spoiled by Mr. Rahul Gandhi. Modi govt's main agenda is loot the poor people but Congress will not allow his to do so.

    DisAgree [11] Agree [29] Reply Report Abuse

  • Desi Admi, Mangalore

    Fri, Nov 10 2017

    Modis Govt has enough number of seats to pass a bill and hence no requirement for 'bangkok babus' vote or ideas. He is only entertaining us . Also dont forget he has lost 26 elections.

    DisAgree [4] Agree [1] Reply Report Abuse

  • RAVINDRA, KARKALA

    Fri, Nov 10 2017

    It shows the Government's sincerity in listening to the grievances of the people and not hesitating in accepting suggestions for a better future of the citizens of the country. Of course, the tax evaders will continue to cry against demonetization and GST.

    DisAgree [26] Agree [10] Reply Report Abuse

  • Rakesh, Mangalore

    Fri, Nov 10 2017

    This not the Government's sincerity in listening to the grievances of the people, but fear of losing elections.

    Brainless cowards already looted enough and killed the economy and now these changes like giving medicine to patient after death.

    This shows the knowledge level and ability to understand the situation of this Govt.

    DisAgree [7] Agree [25] Reply Report Abuse

  • ABD, LOS ANGELES

    Fri, Nov 10 2017

    JAI MODIJI

    DisAgree [29] Agree [8] Reply Report Abuse

  • Praveen, Mangalore

    Fri, Nov 10 2017

    Lost Angel,
    there was no planning for GST by modi. If he had planned it before implementing then there was no such drama.

    DisAgree [6] Agree [23] Reply Report Abuse

  • Jossey Saldanha, Mangalore

    Fri, Nov 10 2017

    Only Ambani, Adani & Ramdev have benefited 😁😁😁

    DisAgree [13] Agree [29] Reply Report Abuse

  • sampath, India

    Fri, Nov 10 2017

    your smiley reflects acche din...

    DisAgree [10] Agree [4] Reply Report Abuse

  • Ozy, Surathkal

    Fri, Nov 10 2017

    The credit goes to Congress, if there was no opposition this BJP Government would have looted poor people

    DisAgree [12] Agree [37] Reply Report Abuse

  • sri_elder, Karkala

    Fri, Nov 10 2017

    If it was kangress all items charged at 18%..
    There won't be any 0% and 5% items ...
    So think twice before supporting kangress

    DisAgree [32] Agree [9] Reply Report Abuse

  • sri_elder, Karkala

    Fri, Nov 10 2017

    Good good tax...
    As an aggressive move, they can reduce earlier service tax items from 18% to 12% as a good will...

    DisAgree [22] Agree [12] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Fri, Nov 10 2017

    The Daily GST Soap Opera is the greatest show of India. Taaliyan....

    DisAgree [6] Agree [25] Reply Report Abuse


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