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GST rates reduced to 18% from 28 % in 178 items

Return filing procedure simplified in massive way, deadlines extended


GUWAHATI:  The 23 rd GST Council meeting held here  on  Friday under the chairmanship of Union Finance Minister, Arun Jaitley decided to recommend major reliefs in GST rates on certain goods and services spread across many sectors and commodities.

The council meeting decided to reduce GST rates from 28 % to 18 %  in respect of 178 items as per the recommendation by the fitment committee. All the new GST rates will come into effect from November 15 next.

Briefing media after the marathon day-long GST council meeting, Arun Jaitley informed that only 50 items had now remained in the 28 % bracket that includes luxury items, sin goods, white goods, auto parts, yatch parts, aircraft parts, cement and paints etc.

Some items like construction fittings, electrical goods, sanitary fittings, marble fittings which were in 28-31 % bracket in pre-GST regime have been put in 18 % bracket. The GST on two items – armoured fighting vehicles and wet grinders- have been reduced from 28 % to 12 %.

Reviewing the goods under 18 % GST bracket, the council meeting today recommended reduction of GST rate to12% in respect of 13items, to 5 % in respect of six items.

The rate of GST in case of eight items have been reduced to five per cent from existing 12 % and in case of six items it has been reduced to nil from existing six per cent.

RESTAURANT RATES: Another major decision taken by the GST council today was related to GST rates charged by restaurants. Jaitley informed that GST rates in respect of restaurants including both AC and non-AC categories have been reduced to uniform five per cent from the existing 18 %. At the same time, it was decided to do away with the existing Input Tax Credit (ITC) benefit provided to the restaurants as the benefit was hardly passed on to the customers.

In case of restaurants within hotels with room rants less than Rs 7500, the GST rate will now be five per cent without ITC benefit.  However, in case of restaurants within star category hotels with room rent more than Rs 7500 the GST rate will remain 18 % with ITC benefit. The outdoor catering will continue to draw GST at 18 %

RETURN FILING:  The GST council today decided to simplify the return filing procedure in a massive way. Deadlines for return filing have too been extended for all categories of tax-payers, which will be soon uploaded in the government website.

The GST council meeting was attended by chief minister of Puducherry, deputy chief ministers of Arunachal Pradesh, Manipur and Delhi and finance ministers of rest of the states barring those from the poll-bound Gujarat and Himachal Pradesh.



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