Massive GST rejig: Only 50 items in top 28 per cent tax slab now, it was 227 earlier

In a massive decision, the GST Council today decided to revise its highest 28 per cent tax slab by removing most items from it, including chocolates, nutritious food, marble, deodorants, shaving cream and sanitary products, thereby bringing the number of goods in the slab from 227 to 50.

The GST Council has decided to keep only 50 items, mostly luxury goods, in the top 28 per cent bracket, Bihar's Deputy Chief Minister Sushil Kumar Modi, who heads the Group of Ministers panel for tackling Information Technology-related glitches, told news agency PTI.

"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 on the sidelines of the Goods and Services Tax (GST) Council meet.

The estimated revenue loss from the reduced items in high tax bracket is expected to be Rs 20,000 crore annually, Modi said.

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 two-day GST Council meeting was held in Guwahati to review the progress of the new tax regime three months after it was rolled out. The meeting was a closed door event with the media not allowed to cover it.

WATCH VIDEO | 28 per cent GST tax slab revised, now only 50 items under it from 227