New Delhi: India’s major tax reform- Good and Services Tax regime is all set to be rolled out in few weeks and before that the powerful GST council cut tax rates for 66 items.
“A total of 133 representations were made to lower taxes for different categories of goods and commodities. The council has lowered the tax rates for 66 items,” Arun Jaitley told the media after the 16th meeting of the GST council that includes all the state finance ministers.
Following the revised tax rates that will be applicable from July 1 this year, packaged food items like pickles, ketchup, toppings, instant food mixes will all be cheaper as GST on these items have been reduced to 12% from 18%.
People with diabetes also have something to cheer as insulin will be cheaper. Earlier, it was put in the 12% slab but now it has been brought down to 5%.
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While school bags will be cheaper as GST has been slashed from 28% to 18%, young children can have fun with colours as drawing book are now tax exempt from an earlier 12%.
Cutlery will cost less – with the tax reduced from 18 to 12% – and so will computer printers and CCTV cameras. These items that attracted 28% GST will now be at the 18 slab.
The issue of entertainment tax that has been flagged by superstars like Kamal Hassan was also taken up and a compromise formula arrived at.
“As you know, entertainment tax currently is imposed by state governments. And the range is from 20 per cent to 110%. The weighted average comes to about 30%. But state governments also give exemptions to film in their own language,” said Mr Jaitley and added, “So we have now made two categories for entertainment tax.”
A film whose tickets are priced above Rs. 100 will attract 28% while those film with tickets priced at Rs. 100 or below would be in the 18% slab.