One year of GST: Nearly 177 items were brought from tax rate of 28 percent to 18 percentSoon after the much-awaited indirect tax reform legislation Goods And Services Tax (GST) was rolled out on July 1 last year, several stakeholders, from tax payers to common citizens, raised their eyebrows, and even expressed outrage for prohibitively high rates of some of the items especially the ones that were put in the 28 percent tax bracket.
The GST was rolled out with five different tax slabs: zero percent, 5 percent, 12 percent, 18 percent and 28 percent.
Though GST was appreciated as a one-stop solution to all indirect tax related woes and the problem of spate of state taxes and levies, but it was condemned for keeping nearly 250 items in the highest tax bracket, which is 28 percent.Nearly four months after the GST was rolled out, the 23rd GST Council meet that took place in Guwahati on November 10 slashed the tax rates from 28 percent to the lower slabs on over 200 items.
The highest tax slab was retained only on 50 'sinful and luxury items' while nearly 177 items were rationalised from the highest tax slab to 18 percent.
One of the most lauded moves during the 23rd GST Council meetwas to bring restaurant bills under the 5 percent bracket from the earlier 18 percent.
Though a lot of items turned cheaper, and affordable,after the GST was rolled out, there are, however,calls to bringother items such as petrol, diesel under the indirect tax regime in a bid to make them cheaperamid crude price hikes that have lately taken the fuel prices in domestic market to unprecedented levels in May this year.These Items saw price cuts duringthe 23rd GST meeting.
Five Things To Know1.
The items on which GST was slashed from 28 percent to 18 percent included wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors, electrical boards, panels, consoles, cabinets etc for electric control or distribution, particle/fibre boards and ply wood, article of wood, wooden frame, paving block, furniture, mattress, bedding and similar furnishing, trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases, detergents, washing and cleaning preparations, liquid or cream for washing the skin, shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient; pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, perfumes and toilet waters, beauty or make-up preparations, fans, pumps, compressors, lamp and light fitting, primary cell and primary batteries, sanitary ware and parts thereof of all kind, articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic, slabs of marbles and granite, goods of marble and granite such as tiles, ceramic tiles of all kinds of miscellaneous articles such as vacuum flasks, lighters and several other things.GST rate cut from 28 per cent to 18 per cent:1.
Wire, cables, insulated conductors, electrical insulators, electrical plugs, etc2.
Furniture, mattress, bedding and similar furnishing3.
Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags4.
Detergents, washing and cleaning preparations5.
Liquid or cream for washing the skin shampoos;6.
Perfumes and toilet waters Beauty or make-up preparations7.
Fans, pumps, compressors, lamp and light fitting8.
Primary cell and primary batteries9.
Sanitary ware and parts thereof of all kind10.
Articles of plastic, floor covering, baths, shower, sinks etc11.
Several other items2.
The highest tax bracket items (28 percent) were also brought into the fold of 12 percent.
These items included wet grinders consisting of stone as grinder, tanks and other armoured fighting vehicles.3.
Rationalisation on some other items made the goods cheaper.
For instance the goods that were earlier in the tax slab of 18 percent were brought in the fold of 12 percent and 5 percent.The goods that came from 18 percent to 12 percent included condensed milk, Refined sugar and sugar cubes, pasta, curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning diabetic food, medicinal grade oxygen, printing ink, among other things.GST rate cut from 18 per cent to 12 per cent:1.
Condensed milk2.
Refined sugar and sugar cubes3.
Pasta4.
Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning5.
Diabetic food6.
Medicinal grade oxygen7.
Printing ink8.
Several other items4.
The items that were brought from 18 percent to five percent included puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya, flour of potatoes put up in unit container bearing a brand name Chutney powder.GST rate cut from 18 per cent to 5 per cent:1.
Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya2.
Flour of potatoes put up in unit container bearing a brand name3.
Chutney powder4.
Fly ash5.
Sulphur recovered in refining of crude6.
Fly ash aggregate with 90 percent or more fly ash content5.
Not only this, the goods were also brought from 12 percent to 5 percent including desiccated coconut, narrow woven fabric including cotton newar [with no refund of unutilised input tax credit], idli, dosa batter, finished leather, chamois and composition leather.The items on which the 5 percent GST rate became nil included guar meal, hop cone (other than grounded, powdered or in pellet form), certain dried vegetables such as sweet potatoes, maniac unworked coconut shell, fish frozen or dried (not put up in unit container bearing a brand name) Khandsari sugar.