GST council may cut down tax on 80% items


Union government is constantly making changes in various GST slabs. In this context, yet another change is likely to take place in the forthcoming GST council meeting, which is scheduled to be held in Guwahati under the chairmanship of the union finance minister Arun Jaitley.

Bihar deputy CM-cum-finance minister, Sushil Kumar Modi, who is member of council too, has given indication in Patna during interaction with representatives of different business houses and trade bodies at a meeting convened by Bihar chamber of commerce and industries.

Deputy CM said, “80 per cent out of 227 items which are in the slab of 28 per cent tax is likely to be slashed in the category of 18 per cent tax slab after Guwahati meeting.” A debate will be held in the meeting on the issue of slashing of taxes, he added.

Bihar finance minister said, “now he can’t claim of slashing in tax, only I can say according to recommendation of ‘Fitment committee’ tax on 80% daily uses items will slashed to 18% from currently existing 28% slab.” He also said, “Union government is trying to reduce the complexity of GST.”

Modi assured the representatives that tax would be reduced on hand-made items, too.

As of now, tax has already been reduced from 100 items.

He also took the occasion to justify the GST and demonetisation and called it complementary to each other.

Modi also said that tax collection is down in many states like Bihar, Madhya Pradesh, Assam and Jharkhand. In Bihar, the shortfall in tax collection is 41.5 per cent, while tax collection reduced in Madhya Pradesh to 31.1%, in Assam 26.8%, and in Jharkhand 31.1%.


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