GST council met today and has come up with some really good news for business class and end consumers.
The council has reduced rates of many white good items as well as other items. The reduced rates will come in effect form 27th of July, 2018.
Earlier there was reduction in GST rates in January for almost 29 itmes.
Lets go through the changes suggested by GST council in snippets:
a) Quarterly return for business with turnover up to 5 crore. Although the tax payments will be monthly. This move will benefit small traders and small business as they comprise almost 93 percent of total business.
b) Council has approved simple return filing process.
c) For traders in Himachal Pradesh, Sikkim, Assam, Arunachal Pradesh, the exemption limit has been increased from Rs 10 lakh to 20 lakh.
d) Sanitary napkins have been exempted from GST and are set to become cheaper as they were taxed at 12 per cent earlier.
e) Marbles, stone and wood deities now exempted. Rakhis, fortified milk also exempted.
f) Rates for following white goods viz., Washing machine, Juicer mixer, Grinders, Shavers & Hair driers, water cooler, Refrigerators, TV, Video games, Vacuum cleaners, Trailers, water heaters, Lithium iron batteries, electric iron cut to 18 per cent from 28 per cent.
g) GST rate of 18% will be applicable to TVs up to 27 inch in size.
h) All leather items GST rates reduced to 18 per cent from 28 per cent.
i) GST on Hotels to be taxed on actual tariff basis not on declared tariff.
j) Rates on paints, wall putty and Varnish down by 10 to 18 per cent from earlier 28 per cent
k) Special purpose vehicles, work truck, trailers GST rate cut to 18%.
l) Scents, toilet spray now at 18 per cent GST rate.
m) Common-use footwears under Rs 1,000 to be taxed at 5 per cent.
n) Ethanol oil for oil companies now to be taxed at 5 per cent in place of 18 per cent.
o) Bamboo flooring put at rate of 12 per cent
p) Imported urea GST rate reduced to 5%.
q) Handicraft items will now be taxed at 12 per cent.
r) Jewellery box, wooden box for paintings, stone endeavour, handbags, ornamental framed mirrors, artware of glass, handmade lamps etc rates reduced to 12%.
s) Decision on 1% sugar cess still undecided.
t) Soon RFID tags will be introduced with Goods and Services Tax Network (GSTN) for transporters to reduce harassment of transporters.
GST council has cleared 46 amendments which will be passed in Parliament soon.
The reduction in GST rates will cost the government exchequer around Rs. 7000 crore.
But the above changes will play a crucial role in image building of the Government as the 2019 elections are also nearing.