With around 15 days to go for GST roll out, the GST Council has minimized the rates for 66 items and increased the composition scheme scope for the benefit of small traders, manufacturers, and restaurateurs.
This scheme will allow allow small traders, manufacturers and restaurants to pay a 1-5 per cent GST rate on sales without tax credits.
Point to be noted here is that there are few items that were historically taxed at a higher rate, but the Council has minimized the tax of these items.
No modification on rates is expected in the near future.
Regarding automakers’ demanding a lower rate for hybrid cars, committee is not sure of the facts that are being given by the industry.
According to the GST regime, all goods and services have been categorized in five tax slabs — 0, 5, 12, 18, and 28 per cent.