A few days back the GST rate has reduced on daily used items. But unfortunately, the consumer is still confused because the list of the items with the revised rate is not available anywhere.
The GST rates on restaurants, other than those in five-star hotels, were slashed from 18% to 5%. According to the sources, the government is all set to cut GST on consumer durable goods like washing machines, refrigerators, etc, from the current level of 28% as part of the next round of rationalisation. The cut came along with a reduction in levies for over 200 items, with 178 of them being from the top slab of 28%, leaving only 50 goods in the highest bracket.
This initiative will give a push in the sector. The government official said that a lower levy on restaurants and durable goods was done to free women from the burden of household chores, which ultimately, leaving them with more time for themselves or other productive work. The other reason is that the products such as dishwashers are largely imported into India and lower local levies through GST may also provide an opportunity to companies to manufacture them in India, instead of shipping them from South Korea and other countries. few people are aware that several white goods are already in the 12% and 18% brackets.
The ministry said that In case of 176 products, GST has been reduced to 18% and have indicated that further rationalisation will take place in future. As for now the only luxury and sin goods facing higher taxes. Over a time, the idea is to move to three rates by converging the 12% and 18% slabs into one, while leaving processed foods and other household items in the 5% bracket. There is a possibility of a two-rate structure in the long run. The ministry added.
In the end, we expect our government to keep transparency and accountability in the decision making for the welfare of the economy.