GST relief

The Goods and Services Tax Council gave relief to consumers and industry and decided to reduce rates for 178 items — mainly mass consumption products — to 18 per cent from the earlier 28 per cent. These items include furniture, detergents, shampoos, hair dyes, beauty products, perfumes, fans, lamps and mattresses.

Eating out in restaurants — both AC and non AC — would also become cheaper as they have been moved to the tax rate of 5 per cent from the 18 per cent earlier. However, an Input Tax Credit which was given to restaurants will now be withdrawn. Though restaurants in starred hotels with room rent above Rs 7,500 will continue to attract GST of 18 per cent with ITC benefit. The new rates will be applicable from November 15.

The 28 per cent slab — the highest under GST implemented from July 1 — has now just 50 items, including parts of automobiles, washing machines, refrigerators, paan masalas and cigars, from the previously 227. GST has five tax slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.

He said all types of chewing gums, chocolates, preparations for facial make-up, shaving and after-shave items, shampoos, deodorants, washing powder detergents, besides granites and marbles will attract 18 per cent GST.

Paints and cement have been retained in the 28 per cent tax bracket. Even luxury goods like washing machines and air conditioners have been retained at 28 per cent.

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