Finance Minister Arun Jaitley announced the new changes in GST after the 23rd council meet in Guwahati today. In a massive rejig in GST so far, around 178 items were shifted from the 28 percent slab to the 18 percent bracket. “GST council has been reviewing rates from time to time and since GST rollout, every month has seen an increase in revenues,” Jaitley said during the press conference. The new items also include daily use products which range from chocolates, deodorants, mattress to shampoos. Interestingly, much to the relief of people eating at restaurants the experience will be cheaper as the new GST bracket for this commodity is now 5 percent. Previously, the restaurants and hotels charged customers with 18 percent GST. Moreover, food items like pasta and handbags made of cotton and jute have been shifted from the 18 percent bracket to 12 percent slab. 13 items moved from 18 percent to 12 percent, 6 items from 18 percent to 5 percent, 8 items from 12 percent to 5 percent, 6 items from 5 percent to nil.
The moving of items out of 28 pct bracket will be effective from November 15. Meanwhile, Hasmukh Adhia talking about the filing return said,” Filing of return for 3B will be continued until March. All taxpayers will continue to file 3B until March 2018.” He added,”If there is a nil return to be filed then late filing penalty will be reduced to Rs 20. For others, it has been reduced to Rs 50.”
Here are the daily use products that have become cheaper for the public:
1) Chewing gum- It has been moved from 28 percent to 18 percent.
2) Chocolates- Everyone loves chocolates and the product is now in the 18 percent bracket moved from the previous rate of 28 percent.
3) Aftershave– It has been moved from 28 percent to 18 percent.
4) Shampoo– The daily used product has also been moved to the 18 percent from the previous rate of 28 percent.
5) Washing Powder and Detergent- An essential product to keep the clothes clean, it will also come under the new rate of 18 percent from 28 percent.
6) Sweets- Sweets is something that one can find in every household, and this commodity has been seen a massive move from 18 percent to 5 percent.
7) Handbags made of Jute and cotton- It has been moved from 28 percent to 18 percent.
8) Plywood, Wash Basin, Construction-related items, Stove, Fire extinguisher, Mattress– It has been moved from 28 percent to 18 percent.
9) Coffee- It has been moved from 28 percent to 18 percent.
10) Custard powder- It has been moved from 28 percent to 18 percent.
Here are the other products that have seen a similar cut in taxes from 28 pct to 18 pct.
Marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are also among the products on which tax rate has been cut from 28 per cent to 18
per cent.
