In a relief for common man, the GST Council on Saturday reduced tax rates on over 50 items including small televisions and lithium-ion batteries, which would now be taxed at 18 percent, down from the current 28 percent.
Apart of bringing down rates, the Goods and Services Tax (GST) Council also exempted GST on other products.
The changes would come into effect across the country from July 27 onward, Finance Minister Piyush Goyal told media after the 28th meeting of the GST Council.
“Refrigerators, small televisions, of upto 25 inches, lithium-ion batteries, vacuum cleaners, domestic electrical appliances, such as food grinders, mixers….storage water heaters, immersion heaters, hair dryers, hand dryers, electric smoothing irons, among others have been brought to the 18 percent slab,” Goyal said.
Another significant decision the council made was regarding easing of return filing procedure by approving two new simplified forms called ‘Sugam’ and ‘Sahaj’, the minister said.
Also, enterprises with annual turnover of upto Rs. 5 crore would have to file quarterly returns instead of the current monthly filing, although they would continue to pay tax on a monthly basis.
However, the implementation of the revamped return filing process would take some time as corresponding changes would have to be made into the GST network, the minister clarified.
The council also deferred the implementation of reverse charge mechanism by another year and now it will come into force from October next year.
The minister further informed that the council would have a special meeting on August 4 to address concern of small and medium enterprises.
Among other tax-reduction decisions, Goyal said, tax rate on handicraft items have been brought under the 12 percent slab, from 18 percent.
During the meeting, the council also made certain amendments to the GST Act including raising the upper limit of turnover for opting for composition scheme from Rs. 1 crore to Rs. 1.5 crore.
It also approved an amendment which will enable taxpayers to opt for multiple registrations within a state in respect of multiple places of business located within the same state.