Here’s all you need to know about the new GST rates:::

In a major decision, the GST Council has decided to keep only 50 out of 227 items in the highest tax slab of 28 percent.

New Delhi: After the 23rd GST Council meeting in Guwahati, Finance Minister Arun Jaitley slashed tax rates on over 200 items, including beauty products, chewing gums, chocolates, coffee, and custard powder, among others, from 28 per cent to 18 per cent.

In a major decision, the GST Council has decided to keep only 50 out of 227 items in the highest tax slab of 28 percent. The cut in tax will cost Rs. 20,000 crore in revenues annually.

Here’s all you need to know about the new GST rates:

1. The 50 items that will still fall under the purview of 28 percent tax slab include cement, tobacco, and air-conditioners among others. 

2. All restaurants will come under the 5 per cent tax bracket, irrespective of whether they are AC or non-AC, except those in five-star hotels. Hotels with tariffs over Rs 7,500 per night, however, will be taxed at 18 per cent.

3. Thirteen items moved from 18 per cent to 12 percent, 6 items from 18 per cent to 5 per cent, 8 items from 12 per cent to 5 per cent, and 6 items from 5 per cent to nil

4. Construction-related items such as marble, flooring, etc have also been put in the 18 per cent tax slab.

5. Tax on wet grinders and armoured vehicles was cut from 28 per cent to 12 per cent.

6. The GST Council also decided to raise the Composition Scheme threshold to Rs 2 crore.

7. Taxpayers with turnover less than Rs 1 crore should file invoices every quarter and those above Rs 1 cr should file invoices every month.

The industry has welcomed the outcome of GST Council.

Here’s what experts have to say...

Shyam Bhartia, Chairman and Hari Bhartia, Co-chairman Jubilant Foodworks said in a statement, "We welcome the move by the Government of India to reduce GST on AC restaurants from 18% to 5%. This is a very progressive step which will make eating out and ordering food at home much more affordable for consumers and will lead to a significant growth in the organized restaurant segment.

EY India said in a statement, "These revisions in rates are expected to reduce prices and increased consumption and thereby bring growth for the consumer products and retail industry,"

Angel Research believes that the rate cut should have an anti-inflammatory impact. According to Mayuresh Joshi, fund manager from Angel Research, the rate cuts should compensate for the inflation impact of higher oil prices.

The 23rd meeting of the council was held in Guwahati, Assam.  The council, comprising state finance ministers, was set up to review the GST returns filing cycle and make it taxpayer friendly.