As expected earlier, the GST Council has agreed to remove most of the items from the highest slab of GST. Speaking to the reporters on the sideline of 23rd GST Meeting, Sushil Kumar Modi made this announcement.
The list of items, which were put under lower tax rates now include chocolates, chewing gum, shampoo, deodorant, shoe polish, detergents, nutrition drinks, marble, and cosmetics. In his media interaction, Sushil Modi said that the GST council was first considering to put around 62 items in the highest tax slab, however, further discussion among the members led exclusion of even more items and finally, there was an agreement on just 50 items to be kept in the highest tax slab.
The two-day GST council meeting is currently underway in Guwahati and will conclude later today. There are a few more announcements expected from the council.
Items like cement and paints will continue to attract 28% tax. At the same time, luxury items, including high end, luxury and sports cars, washing machines, ACs etc will also attract 28% tax with additional cess levied on some of the items. The government will issue a detailed list of the GST rates later.
Bringing down these items from the highest tax slab will leave an impact of over INR 20,000 crores on the government pocket. Sushil Modi also added that the government is considering to bring all the items down to 18%, however, that needs a critical discussion and planning because that will impact the revenue on a much larger scale.