GST rates slash for FMCGs after council meeting, 50 items still come under 28% tax

Fundamental alterations are required in the implementation of GST, says Congress vice-president Rahul Gandhi.

New Delhi, November 10: After receiving backlashes from various corners, the GST Council after a meeting decided to reduce the tax rate on a wide range of FMCG (Fast Moving Consumer Goods). The GST of products ranging from candy to grocery has been reduced to 18 percent while keeping 50 items, in the 28 % GST.

According to Bihar Deputy Chief Minister Sushil Kumar Modi, mostly luxury goods are listed in the 28 percent bracket.

The GST Council had cut the items on the list with 28 % GST. 28% GST is now applicable to just 50 things. It was previously 227. So the council has reduced GST rates for 177 goods.

Bihar Deputy Chief Minister Sushil Kumar Modi said the media that, “There were 227 items in the 28 percent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items,” Sushil Modi told reporters on the sidelines of the ongoing Council meeting.

Goods like paints, cement, washing machines and air conditioners have been put under the label of luxury goods and are retained in the 28 percent GST.

Chocolates, make-up products, shaving items, shampoo, deodorants, detergent powder, granite and marble will come under the 18 percent tax rate.