Arun Jaitley Announces Revised GST Rates, Items Move From 28% Slab
Finance Minister Arun Jaitley said that restaurants will now Come Under 5 percent atx bracket.
The GST Council met in Guwahati on 10 November and decided to move a number of items from the 28 percent tax slab to lower tax slabs. The Council also announced that all the restaurants will now be moved to the 5 percent tax bracket from the earlier 18 percent GST bracket.
Finance Minister Arun Jaitley said that the benefit of input tax credit (ITC) will be taken away from the restaurant industry, as it failed to pass on the benefits to the customers.
He added that the only exception would be restaurants in starred hotels (that charge more than Rs 7,500 per night). These restaurants will continue to be in the 18% bracket and will keep getting the ITC benefits.
After the 23rd meeting, the Council decided to keep only 50 items, mostly demerit, sin and luxury goods in the 28 percent bracket, which earlier had more than 200 items in the slab. Cement paint and washing machines are a few of the items that will continue under the 28 percent GST slab.
Jaitley said 178 items in the 28 percent slab will be moved to the 18 percent tax slab. He said rates on 2 items would be reduced from 28 percent to 12 percent. Rates on 13 items will be reduced from 18 percent to 12 percent.
Six items will be moved from the 18 percent slab to the one with 5 percent, whereas rates on 8 items will be reduced from 12 percent to 5 percent, and rates on 6 items will be reduced from 5 percent to zero tax.
Video Editor: Purnendu Pritam
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