GST rejig: These household items likely to get cheaper

Assuming that the Goods and Services Tax (GST) Council accepts the recommendation of the Group of Ministers on GST rate rationalisation to keep two rates of five and 18 per cent on most goods – apart from 40 per cent on a few sin and demerit goods – several household items will get cheaper.

Nobody knows precisely which items will be those, as it is for the GST Council, scheduled to meet on September 3 and 4, to approve. But the Finance Ministry officials said that 99 per cent of goods attracting 12 per cent GST now could be reduced to five per cent, and 90 per cent of goods attracting 28 per cent could be reduced to 18 per cent.

Also read: GoM on rate-rationalisation accepts Centre's proposal of two-slab GST of 5, 18 pc

The council is meeting early so that the transition period is short and doesn't impact sales of FMCGs, automobiles and other goods. All businesses fear that any delay would hurt their sales.

Also read: FM Sitharaman unveils sweeping GST reform plan to GoMs

The Federal presents a shortened list of household items that are more likely to become cheaper in the rejig. These items have been taken from the GST rate list of the Central Board of Indirect Taxes and Customs.