GST Council slashes tax on 177 items; only 50 remain in 28 per cent slab

Guwahati: The 23rd meeting of the Goods and Services Tax (GST) Council saw 177 daily-use items in the highest 28 per cent slab being moved to lower tax slabs.

The meeting is being chaired by Finance Minister Arun Jaitley in Assam's capital Guwahati.

"GST Council decides to keep only 50 items, mostly demerit, sin and luxury goods in top 28 per cent bracket," said Bihar Deputy Chief Minister and member of the Council, Sushil Modi.

According to Sushil Modi, a lower 18 per cent GST will be levied on chewing gums, chocolates, after shave, deodorant, washing power, detergent and marble.

According to PTI, this decision will have a revenue implication of Rs 20,000 crore annually. "There is consensus that slowly 28 per cent slab should be brought to 18 per cent. But it will take some time because it has a big revenue implication," said Modi.

A major tax overhaul of over 200 items in the top slab had been expected. After Friday's decision, only 50 of the 227 items shall remain in highest GST slab. The tax rates on the rest have been slashed.