What to expect from the 23rd GST council meeting in Guwahati?
As the Goods and Service Tax (GST) council meeting is underway, here's what all Guwahatians can expect out of it:
The tax rates on over 200 daily-use items are expected to come down from 28 per cent to 18 per cent as the Council may prune the items in the highest 28 per cent GST rate.
The items include handmade furniture, shampoo, sanitary ware, suitcase, wall paper, plywood, stationery articles, watch, and play instruments.
The panel could also decide on bringing down the tax rate on food served in restaurants, which could make dining out cheaper.
A panel, headed by Assam Finance Minister Himanta Biswa Sarma had suggested doing away with the tax rate distinction between AC and non-AC restaurants not covered under composition scheme. It has proposed a uniform tax rate of 12 per cent.
Currently, GST is levied at 12 per cent on non-AC restaurants, while it is 18 per cent for air-conditioned ones.
The panel headed by Assam Finance Minister had also suggested that eating out at hotels that have room tariff of more than Rs. 7,500 should attract a uniform 18 per cent rate instead of any separate category for 5-star hotel, which currently falls under the 28 per cent bracket.
The panel also recommended lowering tax rates for manufacturers and restaurants under the composition scheme to 1 per cent. At present, while manufacturers pay GST at 2 per cent, the rate for restaurants is 5 per cent. Traders currently pay 1 per cent.
Businesses with annual turnover up to Rs. 1 crore can opt for the composition scheme, which enables them to pay tax at a flat rate without input credits. The objective of the optional composition scheme is to bring simplicity and reduce the compliance cost for the small businesses.
Similarly, there are many more decisions which will be taken and announced at the press conference slated in the evening.
Union Finance Minister Arun Jaitley along with Revenue Secretary, Ministry of Finance, Government of India Dr. Hasmukh Adhia at the 23rd GST Council Meeting in Guwahati | G Plus photo
G Plus photo
Finance Minister of West Bengal Amit Mitra arrives to attend the 23rd GST Council Meting in Guwahati G Plus photo