The GST Council headed by Finance Minister Arun Jaitley is set to meet on November 10 and may consider lowering lowering tax rates on a host of goods such as handmade furniture, plastic products and daily use items like shampoo, reports said. The panel may also look into easing tax compliance rules to simplify the process of filing returns for businesses. The GST Council has been meeting every month since the Goods and Services Tax (GST) regime came into effect on July 1.
Here are five things to know about the upcoming GST Council Meeting:
Officials have said that items currently being taxed at 28 per cent will be looked into. 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 told Press Trust of India.
All types of furniture attract a 28 per cent tax under GST. Wooden furniture is handmade by unorganised sector artisans and is mostly used by middle class families and there have been demands for lowering tax incidence on them.
Currently goods like shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28 per cent levy. The tax rate on these plastics could be reduced.
The panel is also looking to rationalise tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or was attracted lower VAT rates in the previous indirect tax regime.
Besides, these, the GST rate on weighing machines, compressors may also be rationalised to 18 per cent from 28 per cent. The GST Council, which comprises of representatives of all states, have already rationalised tax rates for over 100 items.
Source : https://www.ndtv.com/business/gst-from-shampoo-to-handmade-furniture-many-items-may-get-cheaper-1772600