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GST Council to continue rationalising rates: Shukla

Press Trust of India  |  New Delhi 

The Council will continue to rationalise rates going forward and the highest slab of 28 per cent would be gradually brought down, Minister of State for Shiv Pratap Shukla said.

The Goods and Services (GST) has a four-tier structure of 5, 12, 18 and 28 per cent. While majority of common use items have been exempted from GST, 28 per cent is levied on luxury, demerit and 'sin goods'.


"The Council has already taken pro-active measures in rationalising rates in the recent past and the trend would continue in future wherever the taxation is deemed to be slightly on the higher side.

"The 28 per cent slab would fall as per genuine and legitimate aspirations of the people," Shukla was quoted as saying in a statement by PHD Chamber of Commerce and Industry.

He said all glitches and loopholes in implementation of will be removed within a year of its implementation. GST, which unified over a dozen local taxes, was rolled out from July 1.

"Industry should not measure the execution of in its first phase of three months since it is such a vast reform and the government should be given a minimum of year...for its perfect implementation," the minister said.

The Council, chaired by Minister Arun Jaitley and comprising his state counterparts, at its meeting yesterday lowered rates on 27 items.

Unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra will now attract 5 per cent lower from 12 per cent. Also, on man-made yarn used in textile sector has been reduced from 18 per cent to 12 per cent.

on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. on e-waste has been slashed to 5 per cent from 28 per cent.

Food packets given to school kids under ICDS will attract 5 per cent instead of 12 per cent.

Job works like zari, imitation, food items and printing items would attract 5 per cent instead of 12 per cent, while salwar suit in a three-piece set has been classified as fabric and 5 per cent would be levied on it.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, October 07 2017. 18:32 IST
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