Today, the all powerful GST council will meet to review some of the tax rates. The Panel headed by Finance Minister Arun Jaitley, will discuss lowering the prices for more than 200 daily use items. The aim of the meeting is to approve tax cuts on common use goods to benefit consumers and businesses.
What to expect from today’s meeting:
1. The council will reduce the GST tax from 28% to 18% on 200 daily use items.
2. The items are most likely to include, shampoo, sanitary ware, plywood, stationery, music instruments and handmade furniture.
3. The panel will also discuss Assam Finance Minister Himanta Biswa Sarma’s suggestion to do away with the GST distinction between AC (at present 18%) and non AC (at present 12%) restaurants. Sarma proposed a uniform tax rate of 12% for both types of restaurants.
4. The Assam Finance Minister also suggested a uniform tax rate for hotels instead of a separate category for 5 star hotels.
5. The panel will also consider lowering the tax rates for restaurants and manufacturers under the Composition Scheme. The Composition Scheme is a fixed GST rate without input credits for companies with a turn over of less than Rs. 1 crore.
The GST Council has gathered every month since the 1st of July 2017. The panel comprises of representatives from all states to review the progress of the GST and make the required changes.
