GST rates trimmed on 88 items; businesses with turnover of up to Rs 5 cr allowed to file returns quarterly

New Delhi, July 23 (KNN) The 28th GST Council meeting chaired by Finance Minister has trimmed GST rates on a number of goods and services including leather and leather made products, handicraft goods etc.

Besides, businesses with turnover of up to Rs 5 crore are allowed to file returns quarterly. So far, businesses with turnover of up to Rs 1.5 crore were permitted to file returns quarterly. 

GST has been brought down on an array of handicraft items from 18 per cent to 12 per cent such as handbags, wooden frames, handcrafted lamps, etc.

Also, handicraft items which used to attract 12 per cent of GST such as handmade carpets, lace, hand-woven tapestries and toran have been brought under the 5 per cent GST bracket.

The new rates will come into effect from Friday, said Union Finance Minister, Piyush Goyal.

Further, footwear having a retail sale price between Rs 500 - 1000 will now be taxed at a rate of 5 per cent while those exceeding the Rs 1000 mark will continue to attract 18 per cent GST.

Ethanol for sale to oil marketing companies for blending with fuel and solid biofuel pellets will now attract GST of 5 per cent. Earlier, it was at 18 per cent.

Domestic electrical appliances such as food grinders and mixers & food or vegetable juice extractor, shaver, hair clippers etc. which used to attract 28 per cent GST has now been brought down to 18 per cent.

In its meeting, the GST Council cut tax rates on 88 items, including footwear, refrigerator, washing machine and small screen TV, while the widely demanded sanitary napkins have been exempted from the levy.