Mumbai, November 10: The Goods and Services Tax (GST) Council, at its 23rd meeting today lowered the tax rates of over 170 commonly used products. A host of daily use items like chocolates, chewing gum, shampoo, deodorant, shoe polish, detergents, nutrition drinks, marble and cosmetics, washing powder, baking powder, make up products have become cheaper. “All items of common consumption have been reduced from 28 per cent to 18 per cent tax rate, Bihar Deputy Chief Minister Sushil Modi said. “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 here on the sidelines of the Goods and Services Tax (GST) Council meet.
Modi further added that the revenue implication of these will be approximately Rs 20,000 crore. 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 items that have been retained in the 28 per cent tax bracket include paints, cement and luxury goods like washing machines and air conditioners.
List of products that have gone cheaper after being moved from 28% slab to 18% slab:
- Chewing gum
- Shaving and Aftershave products
- Shoe polish
- Hair Oil
- Granite and marble
- Nutrition drinks
- Facial make-up
- Washing powder
- Baking powder
Under the Goods and Services Tax regime, various goods and services have been placed in the brackets of 5, 12, 18 and 28 per cent. There were a total of 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items but the GST Council has further pruned 12 more items. “There was unanimity that in 28 per cent category there should be only sin and demerit goods. So, today the GST Council took a historic decision, that in the 28 per cent slab there will be only 50 items and the remaining items have been brought down to 18 per cent,” he said.
In the previous meetings, the GST Council had slashed rates on over 100 items. Sushil Modi further added that the decision taken by the GST Council will have a revenue implication of Rs 20,000 crore annually. “There is consensus that slowly 28 per cent slab should be brought to 18 per cent. But it will take some time because it has a big revenue implication,” he added.