Union Finance Minister Arun Jaitley on Friday said 178 items have been put into lower tax category of 18% out of 228 items in 28% tax bracket previously. He held a brief press conference after the 23rd GST Council meeting in Guwahati, Assam. The GST Council slashed tax rate on a wide range of mass use items– ranging from chewing gums to detergents–to 18% cent from existing 28%.
On 13 items, the tax rates have been reduced from 18% to 12%, while tax rates have been slashed to 5% on five items from 18%. Besides, the rates on six items have been lowered to zero from 5%, added Jaitley.
Jaitley further said restaurant industry will not get input tax credit and added that tax rate will be 5% uniform for all AC or non-AC restaurants. Restaurants in starred-hotels will charge 18% tax with input tax credit, those in lower category hotels to charge 5% GST without ITC, Jaitley said.
Earlier, Bihar Deputy Chief Minister Sushil Kumar Modi said the all-powerful GST council cut down the list of items attracting the top 28% tax rate to just 50 from 227 previously.
“There were 227 items in the 28% slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items,” Modi told reporters.
The GST, which was implemented from July 1, has five tax slabs of 0%, 5%, 12%, 18% and 28%.
Below is the list of items on with GST has been reduced:
http://indianexpress.com/article/business/economy/full-list-of-items-for-which-gst-has-been-reduced-4878520/
