Finance Minister Arun Jaitley and the GST council today made significant changes in the original tax structure which was rolled out on 1 July, this year. The 23rd council meet held in Guwahati cut rates on a wide range of mass items from 28% to 18%. Earlier 227 items fell in the bracket of 28% tax but now it has been brought down to 50 luxury items. The changes will come into effect from November 15, said the Finance Minister addressing the media.
Taxes on handmade furniture, shampoo, sanitary ware, suitcase, wallpaper, plywood, stationery articles, watch, and play instruments have been slashed. Tax rates on AC and non-AC restaurants have been brought to 5% meaning eating out will now be cheaper. Earlier AC restaurants attracted 18 per cent GST and while non-AC ones attracted 12 per cent GST.
At the press meet, Arun Jaitley said GST is a work in progress and the council has been reviewing the rates from time to time. He added if people think these changes have been made due to the upcoming Gujarat elections, then he can’t do much about it. BJP leaders like Shivraj Singh Chouhan and Sushil Kumar Modi hailed the changes made by the council. They said it would provide relief to customers and allow ease of doing business. The opposition, however, maintained the changes have been rolled out after the Narendra Modi led government was criticised over its ill-planning of what was hailed as the ‘biggest tax reform’.
Check out what political leaders had to say about the major revamp:
The recommendations made by the GST Council today will further benefit our citizens and add strength to the GST. These recommendations are in spirit of the continuous feedback we are getting from various stakeholders on GST.
— Narendra Modi (@narendramodi) November 10, 2017
We will not allow BJP to impose a Gabbar Singh Tax on India. They cannot break the back of the small and medium businesses, crush the informal sector and destroy millions of jobs. #GSTCouncilMeet
— Office of RG (@OfficeOfRG) November 10, 2017
After the big win for RG & the @INCIndia in the #GSTCouncilMeet where majority items were removed from 28% bracket , I am now informed that in the #GSTCouncilMeet my point of different tax slabs for hotels & restaurants to be taken up. Had also written to @PMOIndia abt it.
— Tehseen Poonawalla (@tehseenp) November 10, 2017
Big Win For Congress Party – Government Forced to Reduce Tax on Many GST Items which fell under 28%. Arrogance of Modi falters ! #GSTCouncilMeet
— Rachit Seth (@rachitseth) November 10, 2017
Congratulations to FM @ArunJaitley for today’s successful #GSTCouncilMeet. The decision to move nearly 80% of items to a lower tax bracket will provide relief to consumers and promote ease of doing business.
— Piyush Goyal (@PiyushGoyal) November 10, 2017
— ShivrajSingh Chouhan (@ChouhanShivraj) November 10, 2017
Thanks to @arunjaitley for bringing in consensus on all major issues in GST Council meeting.Only Jaitley can do it.
— Sushil Kumar Modi (@SushilModi) November 10, 2017
The announcements on GST divided Twitter, though. While some said the government believed in trial and error, others appreciated the changes. Here are a few tweets:
— Faye DSouza (@fayedsouza) November 10, 2017
Who will compensate for the loss already done due to the government’s irresponsible implementation of GST ? #GSTCouncilMeet
— Nikita Chhabra (@nikita_chhabra9) November 10, 2017
#GSTCouncilMeet Just like DeMo, Modi Govt is playing around with GST. Trial and error and again error and error.
— HRK (@hasanastic) November 10, 2017
— Bimal M Patel (@BimalMPatel31) November 10, 2017
— Satwant Singh Rissam (@ssrissam84) November 10, 2017
— Prakash Prabhakar (@pprabhakar365) November 10, 2017
Though not a big fan of Modi ji and his cabinet, but must admit this government is quite flexible. Either there’s a dearth of good policy makers or they are a novice at implementing them! #GSTCouncilMeet
— Rohan Madhotra (@rohanmaddie) November 10, 2017
India is transforming. Please be patient #GSTCouncilMeet
— Abhishek Prasad (@abhpras) November 10, 2017
#GSTCouncilMeet Glad to note that some rethinking on GST has taken place for the benefit of consumers. people must believe PM Modi who will do the best for everyone & slowly he will reduce more taxes & Income Tax too.
— Totlani Krishan (@kktotlani) November 10, 2017
Congress still in dreams. Reduces in GST is not becauseof there pressure. Its a process which BJP already told us that they wud keep reforming GST
Congee folks dont celebrate electionto bjp hi jitegi gujarat me
— beingaashuu (@aashutosh_bhatt) November 10, 2017
Very Good Decision.. 5% GST on Restaurant… अब खाओ दिल खोल के.. #GSTCouncilMeet
— विद्याकर झा (@Vidyakar) November 10, 2017
Confusion He Confusion Hai Solution Kuch Pata Nahi,
Solution Jo Mile Toh Saala Question Kya Tha Pata Nahi
AAL IZZ NAT WELL#GSTCouncilMeet
— Asif (@asifdfp) November 10, 2017
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