Sunday, Sep 23, 2018 | Last Update : 06:12 PM IST
The Goods and Services Tax (GST) has a four-tier structure of 5, 12, 18 and 28 per cent.
New Delhi: The GST Council will continue to rationalise rates going forward and the highest tax slab of 28 per cent would be gradually brought down, Minister of State for Finance Shiv Pratap Shukla said.
The Goods and Services Tax (GST) has a four-tier structure of 5, 12, 18 and 28 per cent. While majority of common use items have been exempted from GST, 28 per cent tax is levied on luxury, demerit and 'sin goods'.
"The GST Council has already taken pro-active measures in rationalising GST rates in the recent past and the trend would continue in future wherever the taxation is deemed to be slightly on the higher side.
"The 28 per cent GST tax slab would fall as per genuine and legitimate aspirations of the people," Shukla was quoted as saying in a statement by PHD Chamber of Commerce and Industry.
He said all glitches and loopholes in implementation of GST will be removed within a year of its implementation. GST, which unified over a dozen local taxes, was rolled out from July 1.
"Industry should not measure the execution of GST in its first phase of three months since it is such a vast tax reform and the government should be given a minimum of year...for its perfect implementation," the minister said.
The GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, at its meeting yesterday lowered tax rates on 27 items.
Unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra will now attract 5 per cent GST lower from 12 per cent. Also, GST on man-made yarn used in textile sector has been reduced from 18 per cent to 12 per cent.
Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent. GST on e-waste has been slashed to 5 per cent from 28 per cent.
Food packets given to school kids under ICDS will attract 5 per cent tax instead of 12 per cent.
Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent, while salwar suit in a three-piece set has been classified as fabric and 5 per cent GST would be levied on it.