Must Read

GST rates to be lowered on 150-200 items

By IndianMandarins- 09 Nov 2017
527

gst-rates-to-be-lowered-on-150-200-itemsThe GST committee of officers will meet on November 9 on Thursday to examine a proposal to include electricity and real estate within the ambit of the new indirect tax and make suitable recommendations to the Council. Electricity and real estate are two notable exemptions in GST and attract Central and State levies of excise duty, service tax and value-added tax besides alcohol and petroleum products as States have been keen to protect their revenue base. Sources said that discussions will be initiated on the issue when the GST Council meets in Guwahati on November 10. The Council is expected to announce easier compliance provisions for small businesses and lower tax rates for over a 150 items that are currently in the 28 percent bracket under GST. Indianmandarins has learnt that the Prime Minister's Office is also closely monitoring the developments and wants tax rates of 150 to 200 items that at present attract 28 per cent GST lowered. The fitment committee of officials is examining the issue and the expected revenue implication. These include many common use goods such as washing machines, construction and electrical fittings as well as items produced by small-scale industries. "The original objective was to keep the 28 percent bracket only for luxury goods. Accordingly, the fitment of goods is now being reviewed," said a source.

free stat counter