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GST Council meet: lower tax rates on 213 items, eating out to get cheaper

Discussion in 'World Economy' started by Agent_47, Nov 10, 2017.

  1. Agent_47

    Agent_47 Admin - Blog IDF NewBie

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    Detergent, marble floorings, toiletries are among items shifted to the 18% tax bracket from 28%; six items go from 5% to zero tax
    Out of 228 items in the 28% tax bracket, 178 have been put into the lower tax category of 18%, Finance Minister Arun Jaitley announced at a press briefing after the GST Council meet in Guwahati on Friday.

    Detergent, marble floorings, toiletries are among items shifted to the 18% tax bracket from 28%, Mr. Jaitley said. The modified rates will come into force on November 15.

    The tax rate on two items have been reduced from 28% to 12%, 13 items have been reduced from 18% to 12%, while the rate on six items have been cut from 18% to 5% and that of eight items from 12% to 5%. Six items have gone from 5% to zero, Mr. Jaitley announced.

    The restaurant industry will not get input tax credit, Mr. Jaitley added. The consensus in the Council has been that, even though restaurants have been given the benefit of input tax credits, they have not passed this to consumers, Mr. Jaitley said. Tax rate will be 5% uniform for all AC or non-AC restaurants, he said, except those in hotels with tariffs of more than Rs. 7,500, which will continue to be taxed at 18%. Outdoor catering will be taxed at 18% with ITC.

    http://www.thehindu.com/business/Ec...get-cheaper/article20104609.ece?homepage=true
     
    randomradio and Som Thomas like this.
  2. HariPrasad

    HariPrasad Lieutenant FULL MEMBER

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    Reducing GST on restaurant and other small iteams is a great step. Simultaneously, the credit on input also cancled. This is most logical step as the credit was not passed on to end user. Same thing must be done in construction industries as well. Reduce GST from 12% to 5 % and cancel credit. Rate reduction on small items is a most well comed thing. GST rates were arrived at by merging old rates and new rates in old regime. However, those small items which do not generate much revenue should be charged at lower rates. These sort of quick decisions are most well comed gestures. if few more things are done, GST can be an awesome law. One most irrational things need to be addressed is that credit is not available on advance payment. it must be addressed.

    GST is the future of India. This is going to change India from bottom. GST and demonetization are great reforms and they will change India. Few holes in GST must be plugged and they will be plugged with eway bills and some other reforms. Those say GST a gubbar sing tax are really do politics. Let 6 months go and we shall discuss indian economy here once again. I can assure that economy shall not only on right track in six months but shall run. In two years time it will fly.
     

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