Mumbai: Finance Minister Arun Jaitley on Friday announced that the Goods and Service Tax has been brought down on as many as 27 items. Eating out is set to become cheaper, though not immediately. The council agreed in principle to reduce the GST on air-conditioned restaurants from 18 to 12 per cent, and has appointed a group of ministers to decide about it within two weeks. The tax rate has not been increased on any item, nor any new items brought into the tax ambit. Jaitley also said petroleum products will remain outside the ambit of GST.
Khakra, a Gujarati breakfast delicacy, and Chapati, as also dried mango slices, unbranded namkeen, unbranded ayurvedic medicines and paper waste will cost less as the GST on them has been brought down from 12 to 5 per cent.
Similarly, ICDS food packages for pregnant women and children and plastic and rubber waste that attracted 18% tax have been brought down to 5 per cent. In a major relief to the textile industry, the GST on man-made yarn has been brought down from 18 to 12 per cent. Stationery, stones for flooring, except marbles and granites, and parts of the diesel engines and water pumps that were put in the highest slab of 28 per cent tax, along with other luxury items, have been lowered to 18 per cent.
Similarly, the GST on many services like job work for imitation jewellery and zari work have been reduced from 12 to 5 per cent. The GST council had last time lowered the GST on government contracts having high element of labour from 18 to 12 per cent. It has further reduced it to 5 per cent.
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Revenue Secretary Hasmukh Adhia, who sat alongside Jaitley, said there will be cascading effect of the prices falling because of many businesses opting for the composition scheme that will reduce their liability to a nominal rate, and the government hopes they will transfer the benefit to the consumers.
He said as many as 90 per cent of the taxpayers will file quarterly returns and pay tax every three months and not on monthly basis and this relaxation will also reduce their cost.
Yet another hope of further reduction in the GST rates, once the government revenue goes up, was given by Jaitley. This reduction will also bring cheers to consumers as the prices of many items will go down.
WHAT IS CHEAPER
12% to 5%
- Khakhra/chapati
- Unbranded namkeen
- Unbranded ayurvedic
- medicines
- Paper waste
- Job works
- Sliced dry mangoes
18% to 5%
- Plastic waste
- Zari work
18% to 12%
- Manmade yarn
28% to 18%
- Flooring stones
- Stationary items
- Diesel engine parts
- Pumps
GOM will also relook at the current GST rate of 18 percent on air-conditioned restaurants to bring it down to 12 percent. It will present its recommendations in two weeks
