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GST Council retains only 50 items in 28% bracket; 177 items shifted to 18% slab

Published: Nov 10, 2017

By TIOL News Service

GUWAHATI, NOV 10, 2017: WHAT should have been done on the appointed day i.e July 1, the GST Council has done it today at its 23rd meeting here today. With some States clamouring and lashing out at the Centre for keeping too many mass consumption items in the highest tax bracket, the Council is learnt to have decided to shift as many as 177 items from 28% slab to 18% slab. And it is likely to cost as much as Rs 19000 Crore to the Exchequer on annual basis.

Leaving behind some of the items like ACs, paints and cement in the 28% bracket, the Council has moved a large number of commonly consumed items such as washing powders, facial make-up, shampoo, chocolates, granite and marble.

It is learnt that the Fitment Committee had recommended that about 60 items should be retained in the highest tax bracket. But, the Council in its wisdom decided to go beyond the recommendation and slashed the number of items to retain only 50 items.