A reduction in goods and services tax on 25-30 items, including air conditioners and dishwashers, is expected after Prime Minister Narendra Modi on Tuesday, 18 December, hinted at bringing 99 percent of products and services in the 18 percent or lower slab.
Indicating that further simplification of the Goods and Services Tax is on the anvil, PM Modi said his government wants to ensure that 99 percent of all items attract only 18 percent GST. This suggests a reduction in GST rates of 25 to 30 items, Times of India reported.
“Today, the GST system has been established to a large extent and we are working towards a position where 99 percent items will attract the sub-18 percent GST slab.”Narendra Modi, Prime Minister
Before implementation of the GST, registered enterprises only numbered 65 lakh, which has now risen by 55 lakh, Modi said, addressing the Republic Summit.
He indicated that the 28 percent slab of GST would only be restricted to a few select items, such as luxury goods.
‘Making GST as Smooth as Possible For Enterprises’
"We are of the opinion of making GST as smooth as possible for the enterprises," Modi said.
"In earlier days, the GST was framed according to the existing VAT or excise tax structures exercised in those respective states. (With) the discussions held from time to time, the tax system is getting improved," Modi said.
“The country was demanding GST for decades. I am pleased to say that GST implementation has removed contradictions in the trade market and efficiency of system is improving. The economy is also getting transparent.”Narendra Modi, Prime Minister
The top GST slab includes automobiles, aircraft for personal use, cigarettes, soft drinks, tobacco products, revolvers and pistols which are strict to ‘no go areas.’
(With inputs from PTI and TOI)