The GST Council has pruned the 28 percent slab by cutting tax rates on 191 goods over the last one year, leaving just 35 items. The product includes AC, digital camera, video recorders, dishwashing machine, and automobiles.
There were around 226 goods in the 28 percent category when Goods and Services Tax (GST) was implemented on July 1, 2017. Over the last one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates in 191 items.
The 35 goods, which will be left in highest slab once the new GST rates are implemented from July 27, also include cement, automobile parts, tires, automobile equipment, motor vehicles, yachts, aircraft, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.
Deloitte India Partner M S Mani said it would be logical to expect that once the GST collections after the recent reductions stabilize, the remaining items such as televisions of all sizes, dishwashers, digital cameras, air conditioners could be considered for an 18 percent rate.
“It would be ideal if only demerit goods are retained in the 28 percent slab so that a gradual movement towards having fewer GST slabs can be initiated,” Mani said.
EY Partner Abhishek Jain said: “The reduction of GST rates from 28 percent to 18 percent shows that directionally, the government seems to be clear that the 28 percent rate should be restricted to super luxury and sin goods”.