Next GST Council meeting in Guwahati: To review tax structure of restaurants and may cut tax rates on several other items
New Delhi, October 9: GST Council is to reduce the number of products falling under highest tax slab after considering the grievances of finance ministers of different states.
GST Council meeting that took place on October 6 made some speculations before finalizing the concept paper.
A number of products that have a leverage of 28 percent tax were indicated, on Saturday, by officials from Central Board of Excise and Customs (CBEC). The issue will be considered at the next GST Council meeting which is scheduled to be held in Guwahati. Finance Minister Arun Jaitley, last week, had rehearsed the plan to move to fewer slabs in near future.
A panel of state ministers would be set up in order to review the tax structure for different categories of restaurants for possible reduction or improvisations. There is currently a leverage of 12-28 percent tax on restaurants.
GST Council, on last Friday, had decided to cut rate on 27 common use items. GST has been cut to 5 percent from 12 percent on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra. Man-made yarn used in textile sector has been reduced to 12 percent from 18 percent.
GST has been reduced to 18 percent from 28 percent on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts. On e-waste, GST has been slashed to 5 percent from 28 percent.
Instead of 12 percent tax, food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 percent tax.
Instead of 12 percent, 5 percent tax will be imposed on job works like zari, imitation, food items and printing items.
5 percent GST instead of 12 percent will be levied on government contracts involving a high amount of labor.