In its biggest revamp of the GST
structure, the Goods and Services Tax
(GST) Council on Friday decided to lower the tax rates for 177 items from 20 per cent to 18 per cent. From chewing gum to shampoos, most of these items are those of common use.
Additionally, in a piece of good news for restaurant goers, all AC and non-AC restaurants are now going to charge GST
at 5 per cent, unlike the earlier structure of different rates. "As restaurants do not get the benefit of input tax credits, ITC will be withdrawn from restaurants," Finance Minister Arun Jaitley said on Friday.
The major changes were initiated to provide relief to customers and businesses.
Here is a list of the products that have got cheaper
1) The essential items for day-to-day use — toothpaste, shampoo, travelling bags, wool, kitchen knife — have been moved from the top tax bracket of 28 per cent to 18 per cent.
2) Eating out won't be costly any more. GST
council has decided to cut tax on AC restaurants to 5 per cent. Currently, AC restaurants levy a charge of 18 per cent on food bill. For non-AC restaurants, too, it will come down to 5 per cent from the present 12 per cent.
3) Now, after four months of GST
implementation, only 50 goods classified as sin or luxury items like tobacco products, cigar and cigarettes, aerated drinks, perfumes, washing machine, refrigerators, vaccum cleaners, cars and two wheelers will be in the top GST
rate bracket of 28 per cent.
4) Restaurants at hotels with rooms priced above Rs 7,500 a night would continue to pay 18 per cent GST
with the benefit of input credit.
5) Puffed rice, peanut chikki, revdi, chutney powder, fly ash will be shifted from 18% to 5% tax bracket.
6) Idli, dosa batter, fishing nets and hooks, finished leather, coir products will attact a GST
of 5% from now, instead of the earlier rate of 12%.
7)Certain dried vegetables as sweet potatoes, dried or frozen fish (not the branded one), khandsari sugar, guar meal will be moved from 5% tax bracket to nil.
rates on bangles of lac or shellac will come down from 3% to zero.
Here is the complete list of items which have been shifted from 28% to 18% tax bracket: