The meeting came after a council of Ministers wrote to Prime Minister Narendra Modi seeking changes in GST, especially in AC restaurants and expensive hotels.
Ahead of the GST meet, ABP News spoke to GST Council Chairman Sushil Modi who spoke about reducing the GST on objects which fall under 28% tax slab. Mass consumption items like shampoo, shaving cream, deodrant, cosmetics, detergent, chocolates, chewing gum, marble, granite will fall in the 18% tax slab.
“Out of four slabs, one is of 28% and around 270 objects fall in this slab. A committee formed by us has decided that GST on at least 80% of these objects could be reduced to 18%” Modi said.
The Minister further added saying “Objects used for construction like sanitary fittings, wall papers are likely to be reduced.”
On being asked if the fourth slab can completely be removed, the minister said “It is not possible to completely remove the 4th slab as because of these changes, the government is already likely to face a loss of Rs 16,000 crore”.
Around 200 objects are likely to get cheaper as Government mulls reducing GST on them, of which some of them are:
- Shaving cream
- Construction material
- Eating at AC restaurants
- Sanitary material
- Wall paper
- Sports goods