GST council decisions: insulin, cashew and coir to become cheaper

Francis Osborne
June 12, 2017

"After considering recommendations of fitment committee, rates are being reduced in the case of 66 items", FM Arun Jaitley, who is also the chairman of the GST Council, told reporters.

Addressing the 16th GST Council meet in New Delhi on Sunday, Jayakumar said his government was happy to note that its requests with regard to tax on certain items have been heeded to.

Even as West Bengal Finance Minister Amit Mitra has asked the Council to defer GST implementation, the council made a decision to go ahead with the planned 1 July rollout.

He said that, while the tax targeted revenue equivalence with the rates being paid now, in some cases this had been reduced in order to benefit consumers.

"GST on movie tickets below Rs 100 cut to 18 per cent; 28 per cent tax on tickets above Rs 100".

The Council also lowered GST rates on children's drawing books to nil from 12 percent.

Historically, indirect tax changes in the Union budget come into force immediately, even before the Finance Bill is passed, unlike income tax rates that are specific to financial years.

As per the applicable revised rates, packaged food items like pickles, toppings, ketchup, instant food mixes will be cheaper as the GST on these have been reduced from 18% to 12%.

Germany prepared for Brexit negotiations - Merkel
It has an effect on tariff negotiations, on contract negotiations in business and in politics. On Friday, European Council president Donald Tusk warned Mrs May there is "no time to lose".

Similarly, Toyota Kirloskar Motor Vice-Chairman Shekhar Vishwanathan said: "We would like to know the contents of the report that the finance minister is talking about".

The GST Council, which met on Sunday to take a call on the rates of 133 items, ultimately decided on 66 products and the list did not include telecom services or handsets.

To promote regional cinema, the Council approved two categories of rates.

Additionally, tax rate on computer printers has been lowered to 18%.

The higher upper limit for the composition scheme will help small and medium enterprises. The composition scheme provides for a easier method of calculating tax liability and allows GST registration for dealers with turnover below the compounding cut-off.

Only businesses participating in intra-state supply of goods are eligible to enter the GST Composition Scheme.

Jaitley, however, indicated that the GST rate on hybrid cars will not be reduced, a very strong demand from the industry.

Other reports by TheDailyFarc

Discuss This Article