The Goods and Services Tax (GST) Council, chaired by Union finance minister Arun Jaitley and comprising his state counterparts, may look at further rationalisation of the 28 percent slab by cutting tax rates on construction items, like cement in its upcoming meeting on December 22. The all-powerful GST Council has pruned the highest 28 percent slab by cutting tax rates on 191 goods over the last one-and-a-half year, leaving just 35 items in the highest tax bracket.
Previously, there were around 226 goods in the 28 percent category when GST was implemented on July 1, 2017. In its July meeting, the GST Council had further rationalised the 28 percent slab by cutting rates on paints and varnishes, and on daily-use items like perfumes, cosmetics, toiletries, hair dryers, shavers, mixer grinder, vacuum cleaners, lithium ion batteries, and cut rates to 18 percent. The 35 goods, which are left in highest slab include cement, automobile parts, tyres, automobile equipments, motor vehicles, yachts, aircrafts, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala.
Cutting GST rate on cements would give a boost to the housing and construction industry as well as have positive impact on employment generation. Meanwhile, the government has collected Rs 7.76 lakh crore revenue from GST in the first eight months (April-November) of the current fiscal. The 2018-19 Union budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore.
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