Only 35 goods, including air conditioners, remain in highest GST bracket

The GST Council has pruned the 28 per cent slab by cutting tax rates on 191 goods over the last one year, leaving just 35 items, including ACs digital cameras, video recorders, dishwashing machine and automobiles, in the highest tax bracket.

There were around 226 goods in the 28 per cent category when Goods and Services Tax( GST) was implemented on July 1, 2017.

Over the last one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates in 191 items.

Add WION as a Preferred Source

The 35 goods, which will be left in highest slab once the new GST rates are implemented from July 27, also include cement, automobile parts, tyres, automobile equipment, motor vehicles. yachts, aircrafts, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.

Experts said going forward as the revenues stabilise, the Council may look at further rationalisation of the 28 per cent slab, to restrict the highest tax slab to super luxury and sin goods.

Following the Goods and Service Tax (GST) Council meeting in New Delhi on Saturday, Interim Union Finance Minister Piyush Goyal announced reduced GST rates for a variety of commodities.

Addressing a presser, Goyal said, "After careful considerations and discussion with the state finance ministers, we (the GST Council) have decided to implement these changes for the welfare of the middle classes and small businesses and traders. Besides revenue collection, the GST council will now focus on job creation as well."

The decisions made on Saturday will be applicable from 27 July.

Apart from a 100 per cent waiver of GST on sanitary pads, the council has decided to nullify tax on raw materials such as stone, marble and wood, used by for making handicrafts like sculptures. Also, rakhis, sal leaves, the raw materials used to make regular brooms have also been fully exempted from being charged under GST.

The GST charged for commodities such as lithium-ion batteries, vacuum cleaners, food grinders, mixers, storage water heaters, head dryers, hand dryers, paint, varnishes, water cooler, milk cooler, ice cream coolers, perfumes, toilet sprays and other toiletries has been slashed from 28 per cent to 18 per cent.

The GST on handbags, jewellery box, wooden box for paintings, glass art ware, ornamental framed mirrors, handmade lamps, wax, natural gum, iron and brass products have been reduced from 18 per cent to 12 per cent.