The Goods and Services Tax (GST) Council, has decided to lower rates on more than 175 items, slashing taxes on these from the existing 28% . The tax cuts will have a revenue implication of about Rs.20,000 crore.

The council, has decided to keep only 50 luxury and sin goods like tobacco in the highest slab. The mass consumption items have been lowered to 18% slab. Further paint, cements have been kept in 28% slab along with luxury goods like AC, washing machine.

As per Sushil Modi, Bihar finance minister, “There were 227 items in the 28% slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned to more items. Now all types of chewing gum, chocolates, preparation for women cosmetics, shaving and after-shave items, deodorants, washing powder detergent and granite and marble. All these items have been put in the 18% category.”

Further he added, “There is a consensus that slowly, the 28% slab should be brought to 18%. But it will take some time because it has a big revenue implication.”

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