Guwahati, Nov 10 : In a major decision, the all-powerful GST Council council pruned the list of items attracting the top 28 per cent GST rate to just 50 from 227 previously. The rates on these items of mass consumption have been slashed to 18 per cent, Bihar Deputy Chief Minister Sushil Kumar Modi, who heads the panel of Group of Ministers for tackling IT-related glitches, said on Friday.
"All items of common consumption have been reduced from 28 per cent to 18 per cent tax rate.Tax on goods of mass consumption like chewing gum, chocolates, shaving items, shampoo and skin creams, whose revenue implication is not much, has been reduced," Modi told reporters on the sidelines of the Goods and Services Tax (GST) Council meet here.
He further added that the revenue implication of these will be approximately Rs 20,000 crore.
Modi said it was important that the system under GST regime stabilises as only four months were remaining for the close of the current financial year.
The 23rd GST Council meeting got underway on Friday at a city hotel under the chairmanship of Union Finance Minister Arun Jaitley.
The Finance Ministers of at least 24 states of the country participated in the meeting. Some of the states were represented by their Chief Ministers as they hold the Finance portfolio as well.
It is expected that the Guwahati meeting will take a decision about reduction of tax on 150-odd items currently in the 28 per cent slab.