200 daily use items’ GST may be lowered today

PATNA: Bihar Deputy Chief Minister Sushil Kumar Modi, who heads the panel on the Goods and Services Tax Network (GSTN), on Thursday said the rates on over 200 daily-use items are expected to come down from 28 per cent to 18 per cent at the GST Council meet on Friday.

"With a view to giving further relief to small taxpayers (businessmen) and consumers at large, it is expected that tax rates will be brought down from current 28 per cent to 18 per cent on over 200 items of daily use," he said before flying to Guwahati to participate in the GST Council meet.

Items likely to see slash in tax rates are those used in every households, including sanitary ware, suitcase, wall paper, plywood, stationery articles, watch, play instruments, among oth- ers, said Modi, who heads a five-member Group of Ministers (GOM) to monitor technology-related implementation issues of the GST. The objective behind lowering tax on these items falling in top slab is to give more relief to the small businessmen and consumers, he added. Modi, who also holds portfolios of finance and commercial taxes in Bihar, said that he would raise the issues of giving more relief to small taxpayers (businessmen) at the Guwahati GST council meeting.

He said that he has held three separate meetings in past 10 days with the representatives of various trade and business bodies from different districts. GUWAHATI: The Federation of Hotels & Restaurants Association of India on Thursday said the body met with GST Council members, including state finance ministers, to press for rationalisation of tax rates for the industry.

"We have met the GST Council, which was represented by the Union Revenue Secretary Hasmukh Adhia. We have also met a couple of state Finance Ministers separately and put forward our demands," Federation of Hotels & Restaurants Association of India (FHRAI) President Garish Oberoi said. The association is seeking reduction of GST to 12 per cent on all categories of restaurants from the differential rates of different segments, he added. Currently, restaurants with no AC and no bar attract a GST of 12 per cent, while all other restaurants fall under the 18 per cent bracket.

"We also heard a news that GST Council was planning to remove the input credit system for the restaurants. This will hurt the industry and it will be against the basic principle of GST. It will also increase the prices. We requested not to remove it," Oberoi said.

“They have listened to us and almost agreed to it. They have assured us of a favourable outcome,” he added.