Prices of around 200 items will drop starting today after the GST Council on Friday carried out the most comprehensive overhaul of the Goods and Services Tax since its inception in July this year. In a huge reprieve for consumers and businesses reeling under the impact of the economic slowdown, the rejig will see several daily use items get cheaper from today.
At its 23rd meeting in Guwahati last week, the GST Council approved the biggest ever change to the tax rates of 178 items from the highest tax slab of 28% to 18% under the GST regime.
In a significant change, the GST Council lowered the tax rate of restaurants to a uniform 5 per cent from 12 per cent on non-AC restaurants and 18 per cent on air-conditioned ones, a move that will bring down the cost of eating out.
However, restaurants will not be entitled to the benefit of input tax credit (ITC). Restaurants in hotels that charge a room tariff of Rs. 7,500 or more per day will be levied the GST rate of 18 per cent but input tax credit is allowed for them.
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Also under the tax changes, other items like condensed milk, refined sugar/sugar cubes and pasta, which were taxed at 18 per cent, will come under the lower slab of 12 per cent. Tax rates on some other items will fall from 18 per cent to 5 per cent and from 5 per cent to nil.
The GST Council also exempted a few goods from IGST like – ‘lifesaving’ medicines, goods under lease agreements, skimmed milk and specified goods by a sports person of outstanding eminence.
Here is a concise list of all the changes made to the tax rates of 178 items which will be applicable from November 15: