Tuesday, November 14, 2017
India is to alter the goods and services tax (GST) treatment of more than 200 goods and services, mainly to narrow the scope of the top, 28 percent rate.
In a statement following the GST Council's 23rd meeting, the Central Board of Excise and Customs (CBEC) explained that "the Council has recommended major relief in GST rates on certain goods and services. These recommendations spread across many sectors and across commodities."
"As per these recommendations, the list of 28-percent-GST-rated goods is recommended to be pruned substantially, from 224 tariff headings...to only 50 tariff headings including four headings which have been partially reduced to 18 percent."
Additionally, the Council recommended changes in GST rates on a number of goods, in order to rationalize the rate structure with a view to minimizing classification disputes.
Goods on which the Council has recommended reduction in GST rate from 28 percent to 18 percent include: wire, cables, and certain electrical supplies; certain wooden and furniture items; travel supplies, detergents and toiletries; lamps, light fittings, and certain types of batteries; fixtures, fittings, and decorative supplies; broadcasting and recording equipment of various types, and certain building and construction supplies.
Reports in national media suggested that the changes were possible after better than expected revenue collections in August, to provide relief for taxpayers critical of the new regime.