The Goods and Service Tax Council provided a big relief to many consumers after it decided to lower down the tax rate on certain items. The GST Council held a meeting recently in which it came out with an outcome to lower the tax rates on approximately 178 items. Apart from lowering the tax slabs for these items, the GST council has further made changes which led to the reduction of items falling in the tax slab of 28%. As per the new decisions made in the recent meeting of the GST council, only 50 items have found place in the 28% tax slab presently.
GST Council Implements New Changes In Tax Rates
As per the recent meeting held by the GST Council, the tax rates on many items have been reduced like chocolates, washing powder, deodorants, shampoos etc. which earlier were a part of the 28% tax slab. Adding to this, the GST Council made a decision to threshold for the composition scheme to an annual yield summing up to Rs. 1.5 crores. Whereas, to bring about this change, an amendment by the Parliament needs to be passed necessarily. This scheme revolves around 1% tax change with the return filing and tax payment quarterly. This scheme also includes manufacturers having an annual turnover of Rs. 5 lacs.
Restaurants Now To Cost Less
The GST Council in order to do away with the AC and the non-AC outlets, have made changes and thus levied a straight 5% of tax on all kinds of restaurants, eating joints as well as eateries located without any input credit. This has been done in context to those restaurants which do not pass the benefits of the input tax credit to its customers. Also, new deadlines to file for the returns as well as lower penalties which will be charged on the late filing of the same were announced in the recent meeting held.
GST Council’s Review On Revenue Loss
The first three months since the introduction of GST were considered to learn about the revenue trends. An estimated amount of Rs. 90,000 crores in the name of Integrated GST is facing a block in the transitional credit and therefore, jumping to any conclusion in context to the same would be of no use. There are other issues like the inclusion of real estate and electricity under certain heads which are likely to be discussed in the next GST Council meet which is tentatively to be held in the month of January’ 2018.