GST rates reduced on 66 items, through which student get 100% benefit:
The Goods and Services Tax (GST) Council at its 16th meeting here on Sunday revised the rates of 66 items out of the 133. Union Finance Minister Arun Jaitley said. Industry hailed the GST Council’s latest decisions as beneficial, particularly for small and medium enterprises.
On some of the reductions, Jaitley said the tax on cashew has been cut from 12 to 5 per cent. Packaged foods like food and vegetable products such as pickles, chutnies, ketchup and instant food mixes, among others, which historically were taxed at 18 per cent, are going to be taxed at 12 per cent as these are items used by common people, he said.
Tax on cutlery will come down from 18 to 12 per cent, while computer printers will be lowered from 28 to 18 per cent. Insulin and agarbatti will go down from 12 to 5 per cent.
Among other goods, Jaitley said school bags have been lowered from 28 to 18 per cent, while exercise books will come down from 18 to 12 per cent.
All goods and services under the pan-India GST regime, which will subsume the existing multiple central and state levies, have been categorised in four tax slabs of 5, 12, 18 and 28 per cent, besides those items that attract zero tax.
On Entertainment Tax, Jaitley said that following representations from the film industry, the GST Council has decided on a two-slab structure for cinema tickets, whereby those costing less than Rs 100 would be taxed less at 18 per cent, while those above will attract tax of 28 percent.
He also said that lottery tickets and e-way bill are two specific issues that will be taken up at the next meeting of the council here on June 18.
“The purpose of GST is to protect SMEs, protect states’ revenues and benefit people. By stimulating SMEs, which are labour intensive, taxes will go up, impact on GDP will go up and if implemented in appropriate manner, it can lead to greater revenues,” Mitra said.