New Delhi - Goods and Services Tax (GST) Council revised the rates of 66 items in its 16th meeting held today. GST regime is supposed to be in place from July 1, 2017.
Briefing media after the meeting, Finance Minister Arun Jaitley said that the rates have been revised after getting feedback from various organisations. On feedback from industry players, the Council considered the rates once again and approved of these new revisions.
The Finance Minister said that the Council considered the rates of 133 items but decided to revise only 66. He said that the reductions were based on two major principles, maintaining equivalence and the change in the utilisation behavior.
Mr Jaitley also said that rates on goods decided today would make the goods cheaper for common man but may cost to the Revenue of the government. He said that there will be two categories of GST rates on cinema, 28 per cent in case tickets above Rs.100 & 18 per cent in case of tickets up to Rs 100.
Mr Jaitley added that limit under composition Scheme has been raised to Rs 75 lakh.
As per the revised rates, Cashew will attract 5 per cent in place of 12 per cent.
Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces will now attract 12 per cent which was 18 per cent earlier.
As per the decision, tax on agarbatti has been reduced to 5 per cent, Dental wax to 18 per cent, Insulin to 5 per cent, Plastic Beads to 18 per cent, Plastic Tarpoulin to 18 per cent, School Bags to 18 per cent, Exercise Books to 12 per cent and Colouring Books to 0 per cent.
He said that precast concrete pipes will have a tax of 18 per cent in place of 28 per cent whereas cutlery will attract 12 per cent tax.
Tax on tractor components has been reduced to 18 per cent which was earlier fixed at 28 per cent and computer printers will attract a tax of 18 per cent which was fixed at 28 per cent earlier.