The Goods and Services Tax (GST) Council may consider slashing of tax rates on common use goods such as handmade furniture, plastic products, and items such as shampoo in the meeting scheduled to happen this week. The GST Council is also likely to simplify return filing rules in the meeting. The GST Council meeting, headed by finance minister Arun Jaitley, is scheduled to take place on November 10 to consider lowering of 28 per cent GST rate on certain items, officials said.
The GST panel is also expected to rationalise tax rate where tax rates have gone up because the items were either exempt from excise or were attracted lower VAT rates in the previous indirect tax regime. This may come as a big relief for small and medium enterprises.
The GST Council has been meeting every month since the Goods and Services Tax (GST) regime was rolled out from July 1. Many decisions have also been taken to ease the burden on businesses as well as provided relief to consumers.
“A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked,” an official was quoted as saying by PTI.
Some goods that attracted 28 per cent tax under GST such as wooden furniture are handmade by unorganised sector artisans and are mostly used by middle class families. There have been demands for lowering tax incidence on them. Some plastic items attract 18 per cent tax under GST while some items such as shower baths, sinks, wash basins, seats and covers, flushing cisterns attract 28 per cent. There is a need for rationalisation of tax rates on these items, the official added.
Most of the manufacturers are from small and medium industries who were earlier exempt from excise duty on manufactured value of less than Rs 1.5 crore, the official said.
The GST Council have already rationalised tax rates for over 100 items. It is yet to rationalise tax rates for others.
The GST panel is also expected to rationalise tax rate where tax rates have gone up because the items were either exempt from excise or were attracted lower VAT rates in the previous indirect tax regime. This may come as a big relief for small and medium enterprises.
The GST Council has been meeting every month since the Goods and Services Tax (GST) regime was rolled out from July 1. Many decisions have also been taken to ease the burden on businesses as well as provided relief to consumers.
“A rationalisation of items in the 28 per cent tax bracket is expected. Most of the daily use items could be lowered to 18 per cent. Also tax rate on items like furniture, electric switches, plastic pipes could be relooked,” an official was quoted as saying by PTI.
Some goods that attracted 28 per cent tax under GST such as wooden furniture are handmade by unorganised sector artisans and are mostly used by middle class families. There have been demands for lowering tax incidence on them. Some plastic items attract 18 per cent tax under GST while some items such as shower baths, sinks, wash basins, seats and covers, flushing cisterns attract 28 per cent. There is a need for rationalisation of tax rates on these items, the official added.
Most of the manufacturers are from small and medium industries who were earlier exempt from excise duty on manufactured value of less than Rs 1.5 crore, the official said.
The GST Council have already rationalised tax rates for over 100 items. It is yet to rationalise tax rates for others.