Thiruvananthapuram

29°C

Haze

Enter word or phrase

Look for articles in

Last Updated Wednesday November 15 2017 06:34 AM IST

GST cut: eating out to be cheaper

Text Size
Your form is submitted successfully.

Recipient's Mail:*

( For more than one recipient, type addresses seperated by comma )

Your Name:*

Your E-mail ID:*

Your Comment:

Enter the letters from image :

'GST on 50 items of mass consumption slashed to 18%' All items of common consumption have been reduced from 28 per cent to 18 per cent tax rate.

Guwahati: Eating out will be cheaper again after the government decided to shift lower category hotels to the five per cent bracket in the Goods and Services Tax.

All restaurants outside high-end hotels charging over Rs 7,500 per room will uniformly levy GST of 5 per cent.

The facility input tax credit for restaurants is, however, being withdrawn as they had not passed on this benefit to consumers, union finance minister Arun Jaitley said while briefing media persons after a two-day meeting of the GST Council here.

Restaurants in hotels with rooms above Rs 7,500 per day would continue to pay 18 per cent GST with the benefit of input credit.

In a major revamp of the GST tax structure, the GST Council also removed 178 items from the highest 28 per cent category. Only 50 products, including luxury and sin items, white goods, cement and paints, automobile, aeroplane and yacht parts have been retained in the top 28 per cent slab.

"The GST Council has decided to slash tax slabs of 178 items from 28 per cent to 18 per cent. It will be applicable from Nov 15," he said. West Bengal finance minister Amit Mitra earlier told reporters that the loss on account of a hasty and ill-designed GST had resulted in the exchequer losing around Rs 60,000 crore for the Center and Rs 30,000 crore for the states in just the first three months.

With the latest decisions, GST has been cut on a host of consumer items such as chocolates, chewing gum, shampoo, deodorant, shoe polish, detergents, nutrition drinks, marble and cosmetics.

Luxury goods such as washing machines and air conditioners have been retained at 28 per cent.

Among mass consumption items watches, blade, stove, mattresses have been reduced to 18 per cent from 28 per cent. Rate on pasta, jute and cotton hand bags has been cut to 12 per cent from 18 per cent. "Thirteen items, which were earlier under 18 per cent, have been brought down to 12 per cent. Six goods have come down from the 18 per cent slab to five per cent, eight items have come down from 12 per cent to five per cent and six items from five per cent to zero tax," Jaitley said.

The GST Council also made changes in return filing procedures to reduce the compliance burden for the small taxpayers. It decided that filing GSTR 3B would continuing till March 31, 2018.

"All taxpayers will continue to file GSTR 3B. In case of small tax payer or nil tax payments, 3B will be simplified so that in two or three steps one can easily file their return," finance secretary Hasmukh Adhia told reporters.

"The Council also decided that for this fiscal only GSTR 1 will be filled and because we are running in a backlog - where we will file return for July only by December 11," he said.

"For taxpayers above Rs 1.5 crore turnover and who have large number of invoices, we do not want to keep their returns pending for a quarter and instead they should file their invoices monthly," he added. Adhia also said a committee has been set up to examine simplifying the returns pertaining to purchase details that fall under GSTR 2 and invoice matching under GSTR 3.

The Council also decided that penalty for late filing for a 'Nil' tax payer would now be at Rs 20 per day from the earlier Rs 200, and for others it was cut to Rs 50 per day. The Council deferred a decision on bringing real estate under GST to its next meeting, for lack of time.

Read: Latest Business news | Facebook explains how it'll review your nude images to stop revenge porn

The opinions expressed here do not reflect those of Malayala Manorama. Legal action under the IT Act will be taken against those making derogatory and obscene statements.

Email ID:

User Name:

User Name:

News Letter News Alert
News Letter News Alert