The 22nd GST Council meeting, which was held between the Union and State Finance Ministry officials on October 6, 2017, has decided to slash the rates of as many as 27 products while also easing the tax burden on few services. The meeting, which took place for hours, came out with other announcements like a 6-month tax waiver for exporters, widening of composition scheme, among others.
Why not then read out the announcements in this article? I am sure, you would like to read as it concerns as much your life as the businessmen of the country. So, without much ado, let’s read the fresh GST Rate List of the products.
Revised Tax Rate of Products
As we all know, there are 4 tax slabs under GST, which stands for Goods and Services Tax. The council has revised the rates of products belonging to 12%, 18% and 28%.
List of Products Moved to 5% Bracket
The tax rates on several food products like mangoes slice dried, khakra, plain chapati, roti, ayurvedic, homeopathy medicines, few handicraft products, unani, plastic waste or scrap, real zari, and namkeeens other than bearing a registered brand name or on which an actionable claim or enforceable right in a court of law is available, are slashed to 5%. Earlier, these products were getting taxed at 12%.
Also, products which were earlier under 18% GST Tax slab, are moved to 5%. These include plastic waste, pairing or scraps, rubber waste, pairing or scraps, cullet, glass scrap, biomass briquettes, food preparations in unit containers that are intended to be distributed to the economically weaker section of the society. The list even includes the e-waste.
Even hard rubber waste or scrap, which was taxed at 28% rate, will now come under 5%.
Which Has Come Down to 12%?
Synthetic & artificial filament yarn products, sewing thread of manmade filaments and staple wires,
Products Moved to 18%
The government has lowered the GST tax rate of products, which were earlier in the 28% bracket, to 18%. Want to know which are they? Well, the list comprises of poster colour, modelling paste for children amusement, worked monumental or building stone, mosaic cubes, artificially coloured granules, plain shaft bearing, parts suitable for use with fixed diesel engines having power not more than 15HP, parts designed for use exclusively with power driven pumps
AC Restaurants under 12% Tax
The council has given an in-principle approval to lower down the tax rates on AC restaurants to 12% from the existing 18%.
No PAN for Jewellery Purchase Above 50,000
As per several media reports, the government has eliminated the requirement of quoting PAN Card details while purchasing jewellery worth more than ₹50,000. This could lead to bumper jewellery shopping as Diwali is just around the corner.
Exporters Free from IGST for 6 Months
One of the biggest announcement is letting the exporters free from paying Integrated Goods and Services Tax (IGST) for 6 months. This will only add more volumes to the already buoyant export industry. Besides, the government is planning to digitize the export business by developing e-wallets and introducing them by April 1, 2018. The processing of refund cheques for July and August are expected to be done by October 10 and October 18, respectively.
Widening of Composition Scheme
The scope of composition scheme has been widened to include the taxpayers with a turnover of ₹1.5 crore from the existing limit of ₹75 lakh. The scheme proposes 2% and 5% tax for manufacturing companies and restaurants.
Besides, businesses with an annual turnover of ₹1.5 crore would have to file quarterly returns, as was the case earlier.
So, the GST council has slashed the tax rates on a variety of products as shown in the article. The rate reduction is expected to make the goods cheaper and which ultimately result in increasing the overall spending and lifting the economy in the process. As the festive season is on, you couldn’t have asked for a better timing than this for the GST rates to come down. Take advantage of the lower tax rates and shop for your favourite goods with ease.