GST Council announces revision of items under 28 per cent slab, reduces levy under composition scheme for traders

New Delhi, Nov 11 (KNN) Eyeing at relief to the different stakeholders and sectors of the economy, the Goods and Services Tax (GST) council yesterday reduced over 80 per cent of the items that were there earlier in the 28 per cent tax slab. Also the government announced reduction in levy under the composition scheme for the Micro, Small and Medium Enterprises (MSMEs) and traders.

Finance Minister Arun Jaitley informed about the latest development after the conclusion of the 2 day meeting of the GST council in Guwahati.

As per the revision, the levy under composition scheme for traders and industry is reduced to 1 per cent of the turnover, with further ease for the traders selling exempted goods.

The recent revision comes as the biggest change in the structure of the Goods and Services Tax in its fourth month of implementation.

Jaitley informed that 80 per cent of items in the top 28 per cent tax bracket have been shifted to to lower rates.

Also, from November 15, restaurant are to cost less up to to 13 per cent less than before from 18 per cent to 5 per cent.

Different consumer products including shampoo, deodorant, chocolates, fans, furniture and sanitary fittings should get cheaper by up to 10 per cent or more.

Only 50 products, classified as sin or luxury items like tobacco products, aerated drinks and automobiles is to remain in the high 28 per cent slab of the GST structure.

Prior to the meeting different stakeholders including the MSME sector time and again urged the government to look into ways of reducing the compliance burden both on the structural as well as the operational aspect of the new taxation. (With PIB Inputs) (KNN/DA)