The GST Council on Friday recommended reduction in the tax rate of range of items at its 22nd meeting held in New Delhi. Finance Minister Arun Jaitley, who heads the Council said after the day-long meeting, that GST rate on many daily-use items will be reduced, including man made yarn, unbranded namkeen, stones used in flooring and diesel engine parts, among others.
The Council, which had in its last meeting in September cut taxes on 40 items, said it recommended cuts in GST rate on 27 items on Friday. The Finance Minister also hinted that tax on eating out is being reconsidered and announced that a group of finance ministers would take a complete relook at the way the restaurants should be taxed.
Here is the full list of items which are set to become cheaper after the latest set of tax cuts, according to Mr Jaitley:
1. Mangoes sliced dried
2. Khakra and plain chapati / roti
3. Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme dulyapproved by the Central Government or any State Government, subject to specified conditions
4. Namkeens other than those put up in unit container and,
(a) bearing a registered brand name; or
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily
5. Imposing GST only on the net quantity of superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB]
6. Ayurvedic, Unani, Siddha, Homeopathy medicines, other than those bearing a brand name
7. Poster Colour
8. Modelling paste for children amusement
9. Plastic waste, parings or scrap
10. Rubber waste, parings or scrap
11. Hard Rubber waste or scrap
12. Paper waste or scrap
13. Duty credit scrips
14. Sewing thread of manmade filaments, whether or not put up for retail sale
15. All synthetic filament yarn, such as nylon, polyester, acrylic, etc.
16. All artificial filament yarn, such as viscose rayon, Cuprammonium,
17. Sewing thread of manmade staple fibres
18. Yarn of manmade staple fibres
19. Real Zari
20. All goods falling under heading 6802 [other than those of marble and granite or those which attract 12% GST]
21. Cullet or other waste or scrap of Glass
22. Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal
23. Plain Shaft Bearing 8483
24. Parts suitable for use solely or principally with fixed Speed Diesel Engines of power not exceeding 15HP
25. Parts suitable for use solely or principally with power driven pumps primarily designed for handling water, namely, centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps
26. E-Waste
27. Biomass briquettes
The GST Council also hiked the threshold limit of the composition scheme to Rs. 1 Crore from Rs. 75 lakh, The move will ease the compliance norms for small businesses. Businesses with annual turnover up to Rs. 1 crore can now opt for the composition scheme, which enables them to pay tax at a flat rate without input credits, Mr Jaitley said. The council also announced a slew of measures to help exporters with GST compliance.
The review comes after feedback and complaints from businesses over compliance issues with the indirect tax regime.