GST Council meeting: List of items that will get cheaper

New Delhi: Finance Minister Arun Jaitley at the release of the book “India @ 70 Modi @ 3.5” in New Delhi on Thursday. (PTI Photo)

Under the supervision of Union Finance Minister Arun Jaitley, the GST Council on Friday made sweeping changes to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and reduced tax rates on more than two dozen items. Jaitley said the Council also decided to cut GST rate on 27 commonly used items. The latest announcement comes three months after the rollout of the new indirect tax regime.

Besides allowing the business companies with annual turnover of up to Rs 1.5 crore, constituting 90 per cent of the taxpayer base but pay only 5-6 per cent of total tax, to file quarterly income returns and pay tax instead of the current provision of monthly filings, the GST council also raised the turnover threshold to Rs 1 crore from current Rs 75 lakh for businesses to avail of the composition scheme that allows them to pay 1-5 per cent tax without going through tedious formalities. Also Read | Top announcements made by Arun Jaitley

The items on which the GST rates have been reduced include: 

# GST on unbranded namkeen, unbranded ayurvedic medicine, sliced dried mango and khakra has been cut to 5 per cent from 12 per cent.

# GST on man-made yarn used in textile sector has been reduced to 12 per cent from 18 per cent.

# Tax on stationery items, stones used for flooring (other than marble and granite), diesel engine parts and pump parts has been cut to 18 per cent from 28 per cent.

ALSO READ: GST rates on 27 items reduced, threshold for composition scheme raised to Rs 1 crore, says Arun Jaitley

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# GST on e-waste has been slashed to 5 per cent from 28 per cent.

# Food packets given to school kids under Integrated Child Development Scheme (ICDS) will attract 5 per cent tax instead of 12 per cent.

# Job works like zari, imitation, food items and printing items would attract 5 per cent tax instead of 12 per cent.

# Government contracts involving high amount of labour will be levied 5 per cent GST instead of 12 per cent in order to contain cost of those programmes.