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    GST rates cut over 50 products and become cheaper


     In a relief for the common man, the GST Council on Saturday reduced tax rates on over 50 items including refrigerators, washing machines, and small televisions, which would now be taxed at 18 percent, down from the current 28 percent.
    Apart from bringing down rates, the Goods and Services Tax (GST) Council also exempted GST on sanitary napkins, rakhis, fortified milk and idols of deities made of stone, marble, and wood.

    The highest tax bracket of 28 percent has been rationalized further with rates on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium-ion batteries, being lowered to 18 percent. The revised tax rates will come into effect from  27 July,  Finance Minister Piyush Goyal told media after the 28th meeting of the GST Council.
    "Refrigerators, small televisions, of up to 25 inches, lithium-ion batteries, vacuum cleaners, domestic electrical appliances, such as food grinders, mixers....storage water heaters, immersion heaters, hair dryers, hand dryers, electric smoothing irons, among others have been brought to the 18 percent slab," Goyal said.
    Footwear costing up to Rs 1,000 will now attract 5 percent GST. So far, footwear up to Rs 500 attracted 5 percent GST, and those having a retail sale price of over Rs 500 attracted 18 percent rate.
    Tax rate on ethanol has been slashed to 5 percent from 18 percent at present.
    Consumer-durable makers welcomed the government’s move, saying it will help domestic manufacturing and create more employment opportunities, the Consumer Electronics and Appliances Manufacturers Association said.
    “This is a welcome move by the government which has come at an opportune time, when we are just about to prepare ourselves for the upcoming festive season,” said its president, Manish Sharma.
    The council also approved a simplified return filing mechanism wherein all taxpayers, excluding small taxpayers, will now file one monthly return with two main tables — one for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier.
    Currently, hotels with fare over Rs 7,500 attract 28 percent tax; those charging less draw 18 percent. The price taken for that purpose is the declared price. Now, this will be based on the rate charged, said Goyal.
    Goods made by small artisans, rakhis, brooms and commemorative coins have been exempted from GST.
    Bamboo flooring and small handicrafts such as handbags or handmade carpets saw the rates reduced from 18 percent to 12 percent. 

    Textile players currently do not get input tax credit on fibers, as the tax there is higher at 12 percent than the five percent on fabric. That anomaly has been done away with and textile players will get the input tax credit after July 27.
    The premium to be paid for the ‘Modi Care’ health insurance scheme will not attract any GST.
    The Council also decided to allow Assam, Meghalaya, Arunachal Pradesh, Himachal Pradesh, Sikkim and Uttarakhand to increase the threshold for exemption under GST to Rs 2 million annual turnovers, from Rs 1 million at present. It will also introduce an enabling clause in GST laws to allow any state to increase the limit to up to Rs 2 million.
    Companies are now allowed to have multiple registrations within a state. E-commerce entities will have to take registration for the taxable goods they sell on their platform

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