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Government reduces GST for ACs and dishwashers
Posted on: 19/Dec/2018 12:41:14 PM
In a meeting scheduled for Saturday for GST council in terms of pre-budget poll sop aimed at the middle class, the center announced the reduction of GST for some of the goods such as ACs, dishwashers and digital cameras. Prime Minister of expressed the coming down of GST slab with total composition of 99 percent of items or lower tax bracket. Luxury goods are only allocated for 28 percent higher GST slab.
A drop down of GST for more than 25 to 30 items are expected making the customers from middle class section to go for buying with reduced GST. Top slab of GST has now only 35 items as compared to July 2017 when it was 226 items. Aircraft, Yachts, Tobacco products, Pan Masala, Cigarettes, Soft drinks and Automobiles are some of the items still left in the higher GST slab. While household appliances such as white goods and other electric applications, farm-related products, cement, tyres and auto parts will see a reduction falling under the 18% tax tier of GST implementation.
Government is expecting a rise up of income with this new lower tax rates in the form of GST revenue collection rate averaging Rs 1 lakh crore per month. Out of 320 items 191 items are in higher GST slab with a foregone revenue of Rs 90,000 crore. The total cost and income generation with new GST taxation rules can be deduced only in the weekend based on the overall merchandise dealt with the cut off of tax or categorization of household items.
