After 202 days of GST rollout, the Union government has slashed the rates of several products and across various product categories. The rates have been brought down days before the budget announcement date i.e. February 1.
This move is expected to pacify and appease Indian businesses which were hit due to its rollout.
GST rate cuts on several products
The GST council headed by Finance Minister Arun Jaitley announced their decision to cut down the GST rates on 29 goods and 53 services. The council decided to cut down GST rates on and precious stones from 3 percent to 0.25 percent. The GST rate on 20-liter bottle packaged drinking water which was earlier 18 percent has fallen to 12 percent.
As far as the household items are concerned, the GST rates on scientific and technical instruments and liquefied petroleum gas fell to 5 percent. IT was previously pegged at Rs 18 percent.
Additionally, the GST rates were squeezed on an array of products including sugar-boiled confectionery and fertilizer grade phosphoric acid. The GST rate was pegged at 12 percent from the previous 18 percent. Not only this, the rates on used motor vehicles and buses using biofuels was also curtailed from the previous 28 percent to 18 percent.
Inflation of GST rates for some products
As far as impositions are concerned, the rate on cigarettes was inflated from 12 percent to 18 percent. Apart from that, a 5 percent tax was imposed on rice bran.
Possibility of deflating GST rates for many more products
If reports and rumors are to be believed, the GST council is also interested in including various other goods or services in the GST. Real estate may also be included in the GST list. Moreover, Gasoline is another item which may be included within the GST ambit.
As far as the taxpayers and shopkeepers are concerned, there have been various hiccups in adopting to the new system of taxation payment. The GST payers have faced bottlenecks in electronic filing of returns and other related procedures. These problems have forced the government to extend deadlines.