28th GST Council meeting; Few Important Points Discussed
Impact of GST
The goods and services tax, more popularly known as the GST has had a huge impact on the lives of every individual, every business and every firm that there exists. It is very important for one to realize the effects of GST on their respective businesses. This is because of the very fact that even a small and slight change in the percentage of GST charged on an item can have a massive impact on the sale and demand of the very product or service. Apart from this, every section of the society must be taken into consideration while determining the tax levied on a particular good or a service. This is because of the fact that the very purpose of GST is to reduce the income disparities between the rich and the poor.
Recommendations to the GST
Since the inception of GST, a lot of changes have been brought about in accordance with the needs and demands of the society. Various services have been charged with a higher GST depending on whether they are assumed as a luxury. However, this had led to many goods and services which are considered normal by the middle class to also have an extremely high rate. This included the most popular 28% charging of GST for eating food at a normal restaurant. This was seen as too high because eating food is definitely a normal thing. Thus, due to various such observations brought into the light, it was understood that the GST Council must meet in order to renew the proposed changes.
28th GST Council Meeting
The most recent GST Council meeting was held on the 21st of July, 2018. It was held in order to revise as well as highlight the proposed changes that had to be brought about in the GST system. The 28th meeting brought about a lot of changes. One major change was that the GST return should be more simplified in order to file it more easily. However, the format of the same has not been finalized yet. Every change that has been brought about has a detailed analysis explaining why this has to be done. Another important change that has been brought about is the trimming of the GST rates for various goods and services. This is done to the point of exemption for various products that were felt as very normal goods.
Trimming of GST rates
The GST rates of various goods and services have been brought down. This includes cutting down the GST rate from 28% to 18% for eating out at a normal restaurant. However, the 28% rate still applies to luxury restaurants. A lot of other products such as Rakhi, marbles, sanitary napkins, stones etc. have been exempted from the GST because these are seen as essentials which are required for each and every one. The rates have also been trimmed from 28& to 18% for commodities and services such as refrigerators, coolers, paints, televisions up to the length of 68 cms etc. The GST rate has also been trimmed from 18% to 12% for items ranging from kerosene, hand operated rubber rollers and zip and slide fasteners to bamboo floorings and wooden frames for any kind of photographs, mirrors or paintings.
Thus, a lot of changes and recommendations have been brought about in the 28th GST Meet. This was after thorough observation and careful discussion keeping the well-being of the general public in mind. The recommendations made are done in order to make sure that a cordial environment is maintained in such a way that the income disparity amongst the rich and poor is reduced. Therefore, GST has had a huge impact on the entire society, no matter which section that you belong to.