It is pre-assumed that Indian consumers will be getting big benefits with the next round of GST rate rejig. According to the reports, it is anticipated that the government may reduce the tax rates on white goods such as refrigerators, washing machines in the next round of GST Council Meeting. Currently, 28 percent tax rates being charged by the government on consumer durables. The new move will give a major relief to sectors those suffering from slowdown and excess capacity,
At 23rd GST Council Meeting, the council averted to take decisions on white goods, officials said that the reduction in tax rates was only a matter of time. Due to the implementation of new indirect tax regime currently, Modi Government is facing issues in several ways- including political parties, traders, and industries to alter and rationalize the complex GST process.
The GST Council chaired by finance minister Arun Jaitley comprises finance minister from different states and two union territories namely Delhi and Puducherry.
At 23rd GST Council Meeting which was held in Guwahati in last week, the council reduced the tax rates on restaurants, excluding 5-star hotels, from 18 percent to 5 percent. The council reduced the tax rates nearly to 200 items.
Currently, only 50 products or items are left in the 28 percent (high slab rate) category and the Council also raised the threshold limit for small businesses, to make the GST compliance easier. Consumers as well as businesses benefiting with the reduction of tax rates, products ranging from perfumes to chocolates.
A large number of products such as toothpaste, shaving creams, chocolates and shampoos along with MRP listed on them- have available in bargain-priced after the reduction in GST rates.
Officials of few FMCG companies have already issued notifications to sellers and stockists to pass the new tax rates benefits to customers
The reduction in tax rates will influence a large number of products that are already stocked in shops. Stickers of revised prices can be done only when the government gives its approval.
The Maximum Retail Price (MRP) of Product comprises all taxes, until and unless either a company enhances the prices or raises the margin for distributors and dealers, these products should be available in bargain-priced. Businesses are waiting for the fresh guidelines on pasting stickers with revised prices.
Various ministers indicated that there is a possibility of rejigging of GST rates in coming months, ministers also said that there is a chance of two rate structure instead of four-rate structure in the coming future. There are some products actually do not deserve higher tax bracket, the government put them in higher tax bracket only for the revenue generations, said government.
