GST on 33 items reduced from 18% to 12% and 5%

NEW DELHI: The GST council on Saturday decided to slash tax rates on thirty-three daily-use items, Puducherry chief minister V Narayanasamy announced after the 31st meeting of the council.

"33 items have come down from 18% to 12% & 5% as they are common man’s consumption goods," Narayanasamy said.



He added that the original demand by the Congress that all goods should come down to 18 per cent and below, except the luxury items, has been agreed upon by the government.

The move is part of the government's overall plan to rationalise the highest tax bracket of 28 per cent after Prime Minister Narendra Modi had on Tuesday said that 99 per cent of over 1,200 goods and services will attract 18 per cent or less Goods and Services Tax (GST).

The 31st GST Council meeting was held today at Vigyan Bhavan in the national capital under the chairmanship of finance minister Arun Jaitley.

The GST Council, headed by Jaitley, is the highest decision-making body of the new indirect tax system that came into effect from the first of July last year.