GST Council cuts tax for 178 items from 28% to 18%, Only 50 luxury goods to remain in highest slab

New Delhi , Nov 10: The GST council on Friday decided to slash rates on over 175 items, reducing taxes on these from the existing higher slab of 28 percent.

Addressing media after the 23rd meeting, Finance Minister Arun Jaitley said “78 items moved from 28% to 18% #GST slab, changes will be applicable from 15 (November)”.

In an another relief for food lovers that comes from the council is that all restaurants in the country to be levied GST of 5% except five-star hotels and no input tax credit (ITC) benefit will be given to any restaurant.

Apart from this, 13 items have been moved from 18 pct to 12 %, 6 items from 18% to 5%, 8 items from 12% to 5%, 6 items from 5% to nil.

The decision was taken during the 23rd Goods and Services Tax (GST) Council meeting, which was held today in Guwahati, Assam.

Meanwhile, Finance and Revenue Secretary, Hashmukh Adhia speaking about the filing return said,”Filing of return for 3B will be continued till March. All tax payers will continue to file 3B till March 2018.”

He added,”If there is a nil return to be filed then late filing penalty will be reduced to Rs 20. For others it has been reduced to Rs 50″.

“The Council also decided that for this fiscal only GSTR 1 will be filled and because we are running in a backlog — where we will file return for July only by December 11,” he said.

“For taxpayers above Rs 1.5 crore turnover and who have large number of invoices, we do not want to keep their returns pending for a quarter and instead they should file their invoices monthly,” he added.

Adhia also said a committee has been set up to examine simplifying the returns pertaining to purchase details that fall under GSTR 2 and invoice matching under GSTR 3.

The Council deferred a decision on bringing real estate under single tax regime to its 24th meeting, for lack of time.

Wefornews Bureau 

 

 

 

 

 

 

 

 

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