Lucknow: Union Home Minister Rajnath Singh on Sunday said Prime Minister Narendra Modi was the reason behind the amendments in the Goods and Services Tax (GST) rates.
He said that when the PM got to know about the issues with the GST, he categorically stated that necessary amendments must be made.
“When the Prime Minister got to know about the issues with the GST, he categorically stated that necessary amendments must be made. It was after this that the GST council meet was held and with consensus, they made certain changes due to which the traders are now happy,” Singh said.
Singh also claimed that the business and traders were very happy with the GST.
“Businessmen and traders are very happy with the GST. It was implemented on the basis of ‘one nation, one tax’. Our democratic government works for the public,” he further said, ANI reported.
GST rejig: Tax rate on 178 daily items reduced to 18% from 28%
In the biggest GST rejig yet, on November 10, tax rates on over 200 items, ranging from chewing gum to chocolates, to beauty products, wigs and wrist watches, were cut to provide relief to consumers and businesses.
As many as 178 items of daily use were shifted from the top tax bracket of 28 percent to 18 percent, while a uniform 5 percent tax was prescribed for all restaurants, both air-conditioned and non-AC, Finance Minister Arun Jaitley had said after the GST Council meeting in Guwahati.
Jaitley had added that the restaurants, however, did not pass on the input tax credit (ITC) to customers and so the ITC facility was being withdrawn and a uniform 5 percent tax was levied on all restaurants without the distinction of AC or non-AC.
Restaurants in starred-hotels that charge Rs 7,500 or more per day room tariff will be levied 18 percent GST but ITC is allowed for them, as per PTI.
Those restaurants in hotels charging less than Rs 7,500 room tariff will charge 5 percent GST but will not get ITC.
Also, the GST council pruned the list of items in the top 28 percent GST slab to just 50 from current 228.
So, only luxury and sins goods are now only in highest tax bracket and items of daily use are shifted to 18 percent.
Chewing gum, chocolates, coffee, custard powder, marble and granite, dental hygiene products, polishes and creams, sanitary ware, leather clothing, artificial fur, wigs, cookers, stoves, after-shave, deodorant, detergent and washing powder, razors and blades, cutlery, storage water heater, batteries, goggles, wrist watches and mattress are among the products on which tax rate has been cut from 28 percent to 18 percent.
The top tax rate is now restricted to luxury and demerit goods like pan masala, aerated water and beverages, cigars and cigarettes, tobacco products, cement, paints, perfumes, ACs, dishwashing machine, washing machine, refrigerators, vacuum cleaners, cars and two-wheelers, aircraft and yacht.
(With Agency inputs)
Source: Zee News