GST council may reduce tax rates on household goods

New Delhi Nov 5: In a move to further rationalise tax rates and give relief to MSME sector and small traders the GST Council may reduce tax rates of items which are levied at 28 % under GST.

# Furniture

Currently, all types of furniture attract a 28 percent tax under GST.However Wooden furniture is handmade by unorganized sector artisans and is mostly used by middle-class families so the tax rates on these items would be reduced.

Plastic Items

Currently plastic items such as shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28 percent and the Plastic manufacturers have said that 80 % of these items are manufactured By MSME industries so the tax rates on these items would also be brought down.

Compressors

Currently, 28 % tax is levied.The tax incidence under Pre-GST was
17.5 % .so the tax rate may be brought down to 18 %.

Household items

The tax rates on shampoos and other items may be brought down.

The council is expected to ease the rules for the filing of returns in the next meeting which would be held in Guwahati on Nov 9.