ALSO READGST Council meet: Rollout to rule changes, decisions explained in 12 points Perfecting the GST Biggest GST bonanza: 28% tax only on 50 luxury items, eating out cheaper 12-18% GST rate for most products; foodgrain exempted, 5% tax on coal GST Council may cut rates today: Restaurants, traders keep fingers crossed
With the Centre's reduced Goods and Services Tax (GST) rates coming into effect from Wednesday, several products have become cheaper.
A total of 178 items were shifted from the highest tax bracket of 28 percent to 18 percent, in one of the biggest revamps in the GST list in the recent past.
Daily-use products like toiletries and furniture have become cheaper with the revised GST rates.
Some hardware products like wires, cables, insulated conductors, electrical insulators, electrical plugs, switches rates have been slashed.
Several daily-use fast-moving consumer goods (FMCG) products such as chocolates, condensed milk, mayonnaise, curry paste, refined sugar and sugar cubes, pasta, chewing gum, waffles and wafers coated with chocolate or containing chocolate, frozen vegetables, coffee, washing powder, shaving cream, blade, shampoo, deodorant, cosmetics have become cheaper after the implementation of new GST rates.
As for eating out getting cheaper, Southern Gujarat Hotel and Restaurant Association president Arun Shetty told ANI, "Hotels will suffer loss of 5 percent - 7 percent on input tax credit but we are ready to bear it. We are happy that the customers will now once again start coming to the restaurants and the hotels which they had almost stopped."
Eating out has become less expensive, as all restaurants with or without Air-Condition will now charge the GST of 5 percent.
With reduction of rate coming into effect, a consumer shall be charged the revised reduced rates of 18 percent on these items with effect from November 15.
Accordingly, there would be a corresponding reduction in price/MRP on these goods.
The consumers were also advised to take note of these reductions while making purchases.
The Centre's decision to bring down the tax rates on essential commodities is a step that would bring much relief to both consumer as well as the businesses.
Union Finance Minister Arun Jaitley had recently announced moving 178 items from the 28 percent to the 18 percent tax bracket under the GST, applicable from November 15.