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GST rate cut: Complete list of items that got cheaper including refrigerator, cosmetics and other things

After chairing the 28th GST Council meeting, interim finance minister Piyush Goyal on Saturday announced huge rate cuts on a number of commodities under the Goods and Services Tax (GST).

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After chairing the 28th GST Council meeting, interim finance minister Piyush Goyal on Saturday announced huge rate cuts on a number of commodities under the Goods and Services Tax (GST). The new prices will be effective from July 27. The Finance Minister also informed that several products inclusing the sanitary napkins are now have been kept outside the GST ambit. 

Besides, sanitary napkins, deities made of stone, marbles or wood, Rakhis without any precious metals like gold, silver, raw material used in brooms, Saal leaves and fortified milk have been exempted from GST. Considering the senior citizens, Piyush Goyal also said that the supply of services by an old age home has also been exempted from GST.

Below we have listed out commodities that have been slashed from 28 per cent to 18 per cent: 

-Refrigerators
-Water Heaters
-Washing Machines
-Televisions (up to 68 cm)
-Vacuum Cleaners
-Paints
- Hair Shavers
- Hair Curlers
- Hair Dryers
- Scent Sprays
- Lithium-ion batteries

Those commodities that will see a rate cut from 18 to 12 per cent include:
- Handbags including pouches and purses; jewellery box
- Wooden frames for painting, photographs, mirrors etc
- Ornamental framed mirrors
- Brass Kerosene Pressure Stove
- Art ware of iron

The following commodities will now be sold at a GST of 5 per cent:
- Ethanol
- Solid biofuel pellets
- Handmade carpets and other handmade textile floor coverings (including namda/gabba)
- Hand-made braids and ornamental trimming in the piece

Apart from the change in taxes on commodities, Piyush Goyal announced a number of measures to simplify tax filing.

Taxpayers who are yet to register under the GST have been given a final extension till August 31.

Goyal also noted that apart from revenue collection, the GST Council will now focus on job creation as well.

Earlier, the council had revised tax rates on 29 items in January. The biggest rate rationalisation decision was taken by the council in November 2017 when over 200 items were brought in to lower tax brackets from 28 per cent, 18 per cent, and 12 per cent.

The GST Council will next hold a meeting on August 4, exclusively catering to the needs of the Micro, Small and Medium Enterprise (MSME) sector. 

Meanwhile, hoteliers cheered as their long-standing demand to apply Goods and Services Tax (GST) on transaction value, and not declared tariff, was accepted by the GST Council on Saturday.

However, the decision to raise quarterly filing of returns from Rs 1.5 crore to Rs 5 crore annual turnover, may not actually materialise, fear tax experts. Despite all the announcements, businessmen say they will have to wait until a formal notification is out and the date of implementation is clarified.

Chartered Accountant Nitesh Jain summarised Saturday’s announcements by the Council as efforts to simplify the system, remove as many items from the tax slab of 28 per cent and ease compliance. “However, we have to wait until the fine print is out in the notification,” said Jain, adding that clarifications are needed in proposed returns for B2B and B2C transactions. If separate returns are to be filed then it will complicate matters for businessmen in both B2B and B2C businesses, he said.

(With inputs from agencies)

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