Finance Minister Arun Jaitley on Friday announced that the Goods and Services Tax (GST) Council has decided to slash tax slabs for 178 items from 28 per cent to 18 per cent."The GST Council has decided to slash tax slabs of 178 items from 28 per cent to 18 per cent. It will be applicable from 15th of this month," the Finance Minister said while briefing media after the two-day long meeting.
He also said the Council had been looking at the 28 per cent tax slab and constantly rationalising items in it in lesser tax slabs.
Here are the key takeaways from the press conference:
- Only 50 items to face 28% GST rate, 178 items out of 28% tax slab
- Eating out now cheaper, GST for all restaurants cut to 5%
- Restaurants in 5-star hotels to face 18% tax
- Restaurant industry not to get input tax credit benefit anymore
- Outdoor catering rate fixed at 18%
- New tax slabs applicable from Nov 15
- Filing of GST returns made easier
- Taxpayers to only fill GSTR1 until April 30, 2018
- Taxpayers to continue to file 3B till March 2018
- Late filing fees cut to Rs 50 from Rs 200/day
- Composition threshold hiked to Rs 1.5 crore