GST council may slash tax rates of THESE items, services
The GST council may consider slashing tax rate on machine-made matchsticks to 12% and outdoor catering to 5% at its meeting on Friday, from 18% for both at present.
New Delhi, Sept 18: The GST council may consider slashing tax rate on machine-made matchsticks to 12% and outdoor catering to 5% at its meeting on Friday, from 18% for both at present.
As per a ET report, tax cuts on some defence equipment is also on the cards, as a committee on the information technology backbone for GST will make a detailed presentation before the council.
Moreover, the council is also likely to take up the issue of differential tax rates on lottery.
Currently, under the GST Act, there are two rates prescribed on the sale of lottery tickets — 12% if the lotteries are sold within the same state, and 28% if a state sells its lottery tickets outside its jurisdiction.
The tax is levied on the face value of the lottery tickets, inclusive of the prize money to be distributed to the winners, margin of agents, retailers and distributors.
Earlier, the State governments and the lottery industry had represented the issue to the GST Council. And it had set up a group of ministers to examine this.
The council, which had considered the matter in its July meeting, had then referred it to the attorney general for his view.
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