In a big relief for millions of consumers, the Centre on Saturday conceded to a year-long demand and slashed GST rates on a wide range of daily use appliances and products.
The announcement in this regard was made by Union Finance Minister Piyush Goyal following a meeting of the GST Council, which decided to reduce tax rates on a wide range of daily use appliances and products.
“GST Council cuts tax rate on an array of products. Rakhis have been exempted from GST, tax on ethanol has been cut to 5 percent, small handicrafts have been exempted,” Finance Minister Piyush Goyal told reporters during the press briefing.
Among several items on which GST was reduced include footwear, small televisions, water heater, electric ironing machines, refrigerators, lithium-ion batteries, hair dryers, vacuum cleaners, food appliances and ethanol.
GST on mixer grinder, perfumes, cosmetics, shavers have also been reduced from 28 percent to 18 percent, the FM said.
GST on handbags, jewellery box, wooden box for paintings, artware of glass, stone endeavour, ornamental framed mirrors, handmade lamps etc has been reduced to 12%, the Finance Minister said.
‘While GST tax on sanitary pads was cut from 12 percent to zero, rakhis were exempted from the tax,” the Finance Minister said.
New tax rates will be effective from July 27, the minister added.
Besides, tax rates on worked up Kota stone, sandstone and similar quality of local stones were cut from 18 to 12 percent, with the purpose of avoiding classification disputes.
The value limit of footwear was enhanced from Rs 500 to Rs 1,000 for 5 percent rate, Goyal informed.
GST on footwear up to Rs 1,000 reduced by 5%: Finance Minister Piyush Goyal
GST on 17 items used by middle class viz paints, refrigerators, washing machines, vacuum cleaners, storage water heaters, TVs up to 68 cm was reduced from 28 to 18 percent.
The reverse charge mechanism has been deferred by a year to September 30, 2019, the minister said, while adding that the businesses with turn over of up to Rs 5 crore can file quarterly returns.
The step will benefit 93 percent taxpayers, the FM hoped.
Besides revenue collection, the GST council will now focus on job creation as well, the Finance Minister said. ”GST council has cleared 46 amendments, which will be passed in Parliament,” Goyal said.
While stressing that simplification in the process is the government’s priority, Goyal said that soon RFID tags will be linked with Goods and Services Tax Network (GSTN) for transporters.
This will reduce harassment of transporters, he said.
The next GST Council meeting will be held on August 4. He also informed that the exemption limit for traders in Assam, Arunachal Pradesh, Himachal Pradesh, Himalaya and Sikkim have been increased from Rs 10 lakh to 20 lakh.
The next GST Council meeting will be held on August 4.
”Special meeting of GST council will be held on 4 August in Delhi that will be focussed on MSMEs (Micro, Small and Medium Enterprises ) sector,” Goyal said.
Leave a reply