Tax rates for 28 % slab to be reduced

New Delhi Nov 2: In a move to provide relief for common and MSME sector the GST council may reduce the rates on some of the goods and services which are tax at 28 % . Sources have said that the DIPP has requested the GST the council to relook at the highest slab of 28 % and many congress state governments have also urged the council to reduce the tax rates.

Many industries have also said that the items under high tax rates are manufactured by small and medium scale industries and reduction in tax rates will benefit them and consumers would also be benefitted as some of the items are daily usage items.

Government officials have also said that the only luxury items must be taxed at 28 % and not items of mass consumption.Some of the items which are taxed at 28 % include washing machines, refrigerators, electrical fittings, cement, ceiling fans, watches, automobiles, tobacco products, nutritional drinks, auto parts, plastic furniture, plywood.

Earlier the GST council approved a concept for reducing tax rates and according to the paper for the 28% bracket, goods of mass consumption or public interest, intermediate goods and those predominantly manufactured in the unorganized MSME sector and export-related items could be considered for review, subject to revenue implications.

Finally, the GST Council in next meeting would take a review decision in this regard.