GST Council removes 178 items from 28% slab, simplifies returns
The GST is refusing to go away from the headlines.
The GST Council in its 23rd meeting removed 178 items from its highest slab list of 228 items. After this adjustment, the highest slab has only 50 items left under it that is merely a quarter of the initial items.
In addition to this, the GST Council has reduced the tax rate of all restaurants to just 5 percent without any input tax credit. This does not apply to eateries in luxury hotels.
Removing 178 items would cost the exchequer Rs 20,000 crore.
The GST Council has also eased the burden of tax compliance and the hassles of filing returns. The delay in filing returns would now be fined at Rs 20-Rs 50 per day. It has also increased the annual turnover threshold to Rs 1.5 crore under GST composition scheme.
The tax rate for manufacturers was also halved to 1% bringing it at par with the traders' tax rate.