New Delhi: The Group of Ministers (GoM) for GST rate rationalisation has decided to lower tax rates on certain products like 20-litre packaged drinking water bottles, bicycles and exercise notebooks from 18% to 5%, PTI reported quoting officials.
If that is good news for some people, there will be an increase in prices on some luxury item
s as the GoM suggested raising taxes on high-end wrist watches and shoes.
Watches which currently cost more than Rs 25,000 and shoes worth above Rs 15,000 will now attract GST of 28% — up from the existing 18%.
According to PTI, once the changes suggested by the GoM headed by Bihar Deputy Chief Minister Samrat Chaudhary are effected, it would result in a revenue gain of Rs 22,000 crore.
The six-member GoM on GST rationalisation also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, Karnataka Revenue Minister Krishna Byre Gowda and Kerala Finance Minister K N Balagopal.
Among other proposed rate changes, certain items in the 18% GST slab like hair dryers, hair curlers, and beauty or make-up preparations could be pushed up to the 28% bracket.
GST is currently a four-tier tax structure — 5%, 12%, 18% and 28% slabs.
Essential items are exempted or taxed the lowest and luxury items are taxed the highest.