India: Goods and Services tax rate cut on 178 items

By APD writer Rishika Chauhan

NEW DELHI, November 13 (APD) - The government has decided to lower the Goods and Services Tax (GST) rate on more than 178 items of mass consumption, as a result items like detergent, shampoo and chocolates will become cheaper.

GST on itims of mass consumption will be reduced

The announcement was made on Friday, as the panel on GST decided to introduce a multi-rate system.

The tax on restaurant bills has been reduced to 5%. A special tax payment window will be introduced for small and medium enterprises (SMEs) called the composition scheme and tax rate on such enterprises will be significantly reduced.

According to a report published in the Hindustan Times, the latest changes in GST have been made to, “ease the pressure the government faces over economic disruptions from the GST rollout and last year’s decision of the government to ban 500 and 1000 rupees bank notes, which caused great inconvenience and loss to the public.”

The decision on GST rate reduction comes close to elections in the province of Gujarat, which is considered as a stronghold of the Bharatiya Janata Party (BJP), the political party Prime Minister Narendra Modi is affiliated to.

BJP is believed to be popular among the owners of small enterprises, which have received the benefits of GST rate reduction.

(ASIA PACIFIC DAILY)