A Group Of Ministers(GoM) to propose revisions for 150 items and will report to the GST Council, chaired by Finance Minister Nirmala Sitaraman, and the Council will review the proposal in its 55th meeting in Jaisalmer.
The 150 items will include goods and services including textiles. It is also likely to suggest a new slab of 35% for tobacco and tobacco-related products against the 28% (including compensation cess). The GoM rate rationalization was chaired by the Deputy Chief Minister of Bihar Samrat Chaudhary. The report is said to be submitted to the GST Council meeting on December 21st.
The GoM has recommended lowering rates for textiles, bicycles, and exercise books, items of common use. The GoM has suggested a revised slab structure that keeps the 5 per cent rate for textile items up to ₹1,500 but proposes an 18 per cent tax for products priced between ₹1,500 and ₹10,000. For textiles priced above ₹10,000, the report recommends a hike to 28 per cent, aligning them with luxury goods. Currently, the GST rate structure for textiles applies a 5 per cent tax on items priced up to ₹1,000 and a 12 per cent tax on those priced above ₹1,000.
The GoM is also believed to have suggested raising the GST rate on several luxury items including high-end wrist watches and shoes. The proposal is suggested to increase the GST rate on wristwatches priced above ₹25,000 from 18 per cent to 28 per cent. Similarly, shoes costing over ₹15,000 will also see a tax hike, with the rate going from 18 per cent to 28 per cent.
However, the GoM is believed to have suggested providing relief on everyday essential items, like lowering the GST on bicycles priced below ₹10,000 from 12 per cent to 5 per cent. Exercise books and packaged drinking water above 20 litres would also see a reduction in GST from 12 per cent and 18 per cent, respectively, to 5 per cent.
No comments:
Post a Comment