New Delhi: The GST rate on 50 items of mass consumption, that were in the 28 per cent tax slab, has been slashed to 18, Bihar Deputy Chief Minister Sushil Kumar Modi, who heads the Group of Ministers panel for tackling IT-related glitches, said on Friday.
“All items of common consumption have been reduced from 28 per cent to 18 per cent tax rate.
“Tax on goods of mass consumption like chewing gum, chocolates, shaving items, shampoo, skin creams, whose revenue implication is not much, has been reduced,” Modi told reporters here on the sidelines of the Goods and Services Tax (GST) Council meet.
He further added that the revenue implication of these will be approximately Rs 20,000 crore.
Modi said that it was important the system under GST regime stabilises as only four months were remaining for the close of the current financial year. The GST Council met in Guwahati on 10 November and decided to move a number of items from the 28 percent tax slab to lower tax slabs. The Council also announced that all the restaurants will now be moved to the 5 percent tax bracket from the earlier 18 percent GST bracket.
Finance Minister Arun Jaitley said that the benefit of input tax credit (ITC) will be taken away from the restaurant industry, as it failed to pass on the benefits to the customers.
He added that the only exception would be restaurants in starred hotels (that charge more than Rs 7,500 per night). These restaurants will continue to be in the 18% bracket and will keep getting the ITC benefits.
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