Bihar Deputy CM Sushil Modi on Friday announced that only 50 of 227 items will remain in highest GST slab, which is 28 per cent. The decision was announced on the sidelines of 23rd GST Council meet is underway in Guwahati in Assam.
Earlier, about 200 items were in the maximum of four tax slabs. The decision comes amid complaints by traders and small businesses which say the new nationwide tax, which came into effect from July, has increased their tax and administrative burden.
Sushil Kumar Modi, said, "Almost 227 items were there in 28 per cent GST slab, now only 50 remain, which are mostly luxury items, rest have been put in 18 per cent."
Himanta Biswa Sarma, Assam Finance Minister, said, "GST meeting will be path-breaking, many crucial decisions in favour of traders, manufacturers and consumers will be taken. Some important decisions are already taken like reducing almost 200 goods from 28 per cent to 18 per cent slab."
GST on chocolates, shaving cream, toothpaste and shampoo brought down.
The 23rd meeting of the Council, being held in Guwahati, will also deliberate on the suggestions made by Assam Finance Minister Himanta Biswa Sarma-headed GoM to cut tax rates for the composition scheme businesses to 1 per cent and lower rates for non-AC restaurants.
The Council, comprising state finance ministers, is also set to review the GST returns filing cycle and make it taxpayer friendly.