The council at its 23rd meeting on Friday in the biggest tax recast slashed tax rates on over 200 categories including detergents,shampoo,deodorants,cosmetics, chocolates to 18%.A host of grocery ingredients, every day household and personal care products will cost less now as GST has been lowered from the flickering 28% slab.
The council also has accomplished a major changes in the tax rate for goods, therefore lower tax on restaurants and a bigger budget composition scheme.Only 50 products classified as luxury sections like drinks,tobacco,automobiles will reeling by in the topmost GST rate of 28% bracket.Even GST was rolled out July 1 more than 250 items were in this spell.
The government reduced levy under composition scheme for industry and trader with further easing for selling goods.A spokesperson for confectionary maker Mondelez said,”We are delighted with this very progressive step that the government has taken to reduce GST rate for products like ours that are consumed by the masses.We have always believed in keeping the interest of our consumers in mind and will pass on the benefits to them. ”
In our country’s largest home care segment-laundry-companies are expected to either increase or grammage or reduce prices.Vivek Gambhir,managing director of Godrej Consumer Products Limited said,” The decision of moving daily essentials items to 18% GST rate will result in higher consumption,as the benefits of lower GST rate will be passed on to the end consumer and will make these items more affordable. ”
Although GST legislation includes on anti-profiteering clause requiring companies to pass on the benefits of lower taxes to consumers,companies are also looking after limpidity on latest version.However, many of ours every day use items will cost less from now and because of this people will get relief from excruciating pain of GST that once could debilitate them for earning bread simply to shallow at the wane Sun of dusk.The last round of changes will leave a R’s 20,000 -crore hole in the pockets of the states and the centre.The Union government will have to tolerate burden of any breach of collections till the good time will ahead.Jaitley said the revenue loss was generally national.The regime of 28% has toppled down tentatively.