The Goods and Services Tax (GST) Council will consider reducing the rate of tax on many items of daily use in the meeting this week. It is reported that at the council meeting, the reduction in GST rates will be considered on the everyday used items like handmade furniture, plastic products, and shampoo.
The meeting, headed by finance minister Arun Jaitley, is to be held on November 10. Government officials said that considering the reduction in GST rates of 28% on many commonly used items, it would be considered. For the relief of small and medium enterprises, the committee will work to make the tax rates rational in those areas where the rate of taxation has increased after the implementation of GST. In earlier indirect taxes, these were exempted from the rate of excise duty or they were valued at lower rates.
GST has been implemented from July 1 this year. Since then, GST Council meeting is happening every month. Many such changes have been made in these meetings which can reduce the burden on companies as well as consumers. An official said that tax rates on slab goods of 28% will be rationalized.
The tax rate on most everyday items can be reduced to 18%. Apart from this, tax rates can also be reviewed on furniture, electric switches, plastic pipes. All the furniture in GST has been taxed at 28%.
Most of the timber furniture is in the unorganized sector and used by middle-class families. Similarly, 18% GST has been installed on plastic products. But the GST rate is up to 28% on shower bath, sink, wash basin, lavatory pans, seat, and cover etc. Officials said that these also need to rationalize rates.
Apart from this, GST can also be reduced from 28 to 18 percent on weight-making machine and compressor. GST Council includes representatives from all the states. Council has already rationalized rates on more than 100 items.