Govt to reduce GST rates of small items

In a bid to further rationalize GST rates, government plans to reduce rates applicable on many daily use items from the current 28% to 18%. The rate cuts would provide relief to common man and small businesses. The GST Council is also looking at ways to simplify GST return filing during a meeting scheduled for Friday, reported a leading news agency.

The items include small furniture both wooden and plastic, electric fitting, bath fitting, also GST rates of essentials such as soaps and shampoo are being reworked by the government. The move also stems from the observation that people are engaging in cash transactions on these small items in order to evade taxes.

In terms of returns filing, which has become cumbersome for small traders due to lack of awareness about the internet as well as the complexity of the GSTN network, the Council may plan to make it simpler by reducing the number of filings for small businesses.

The market will surely cheer any positive outcomes from the deliberations between the industry representatives and the government during the week.