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GST: Eating out, items of daily use get cheaper

New Delhi: Eating out and mass consumption products have become cheaper as the lower GST rates on over 200 items come into effect from Wednesday.
Large retail outlets have also started advertising the revised downward prices of FMCG items like Shampoo, detergent and beauty products on account of reduction in Goods and Services Tax (GST).
The government has notified lower GST rates in over 200 items, including chocolates, waffles, furniture, wristwatch, cutlery items, suitcase, ceramic tiles and articles of cement.
The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, had last week cut rates on these items to provide relief to consumers and businesses amid the economic slowdown.
The new tax rates were to come into effect from November 15.
As many as 178 items of daily use were shifted from the top tax bracket of 28 percent to 18 percent, while a uniform 5 percent tax was prescribed for all restaurants, both air-conditioned and non-AC.
Earlier AC restaurants attracted 18 per cent GST, while non-AC ones levied 12 percent.
Restaurants in starred-hotels that charge Rs 7,500 or more per day room tariff will be levied 18 per cent GST, but input tax credit (ITC) is allowed for them.
Those restaurants in hotels charging less than Rs 7,500 room tariff will charge 5 per cent GST but will not get ITC.
GST Council pruned the list of items in the top 28 per cent Goods and Services Tax slab to just 50 from 228.
So, only luxury and sins goods are now alone in the highest tax bracket, and items of daily use are shifted to 18 per cent.
Also, tax on wet grinders and armoured vehicles was cut from 28 per cent to 12 per cent.
The rate on six items was reduced from 18 per cent to 5 per cent, on eight items from 12 per cent to 5 per cent and six items from 5 per cent to nil.
Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing powder, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are among the products on which tax rate has been cut from 28 per cent to 18 per cent.
M Post Bureau

M Post Bureau

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