GST Council to Re-consider the Rates of 133 Products
The Goods and Services Tax (GST) Act, has implemented in the country from 1st July 2017. Under the new indirect tax regime, a four tax slab of 5, 12, 18 and 28 per cent has been introduced. Some stakeholders, who are not happy with the present rates have approached the most powerful policy making body, the GST Council, requesting to reduce tax burden on around 133 products. Reportedly,...
The Goods and Services Tax (GST) Act, has implemented in the country from 1st July 2017. Under the new indirect tax regime, a four tax slab of 5, 12, 18 and 28 per cent has been introduced.
Some stakeholders, who are not happy with the present rates have approached the most powerful policy making body, the GST Council, requesting to reduce tax burden on around 133 products.
Reportedly, the Council is flooded with requests for tweaking GST rates on various products from helmets to granite slabs, hybrid cars to namkeen.
Mainly, GST on IT products, helmets, granite, tractors, Namkeen, bhujias and potato chips, sweetmeats, kulfi, wet dates, Isabgol, and a variety of sugar confectioneries like peanut chikki, etc, will be reconsidered by the Council in its next meeting.
Slashing GST on IT products to 12 per cent from 18 per cent can make a huge impact on the employment sector.
Also, a request has been made for cut in tax on macaroni/ pasta/noodles to 5 per cent from 18 per cent as vermicelli is taxed at 5 per cent and there should be uniform tax on all products manufactured through the same set of machines and equipment.
A demand has been made to cut tax rate on packaged drinking water sold in small pouches and refill cans with 20 litre capacity to nil from present 18 per cent as GST implementation has seen a sudden rise in their prices.
GST on sanitary pads has been sought to be nil from 12 per cent. GST on sanitary napkins has been challenged before various High Courts through writ petitions.
Sources said GST Council refers some of the tax change requests to the fitment committee to see if there is any merit in the demands and upon recommendation of the committee takes up for approval any changes.
To help cut reliance on imported oil, duty on bio-diesel or bio fuel extracted from non-edible oilseeds has been sought to be cut to nil or 5 per cent from current 18 per cent.
