20-litre water bottles – bikes to be cheaper | 20-litre water bottles and bikes to be cheaper: Ministerial panel recommends 13% reduction in GST, shoes and watches could be 10% more expensive
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20-litre water bottles – bikes to be cheaper | 20-litre water bottles and bikes to be cheaper: Ministerial panel recommends 13% reduction in GST, shoes and watches could be 10% more expensive

New Delhi41 minutes ago

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The government is considering cutting goods and services tax (GST) on bicycles, 20-litre drinking water bottles and children’s sports notebooks. At the same time, there are plans to increase taxes on watches and shoes by 10%. To this end, a meeting of the Group of Ministers (GoM) aimed at simplifying the GST structure was held on Saturday (October 19).

Following this, recommendations were made to the GST Council to change the taxes on these five products. After the meeting, Bihar Deputy Chief Minister and Chairman of the Group of Ministers Samrat Chaudhry said that based on the decision of the group, the government expects an increase in GST revenue of Rs 2.2 billion.

13% reduction in consumption tax (GST) on water bottles

  • bike – It is proposed to reduce the GST on bicycles priced above Rs 10,000 from 12% to 5%.
  • water bottle- It is proposed to reduce the GST on 20 liter water bottles from 18% to 5%.
  • Practice Notebook – It is proposed to reduce the GST on children’s exercise notebooks from 12% to 5%.
  • Watch – It is proposed to increase the GST on watches priced above Rs 25,000 from 18% to 28%.
  • shoe – It is proposed to increase the GST on shoes priced above Rs 15,000 from 18% to 28%.

GST collection shows economic health

It has been 8 years since the implementation of the GST system. GST collections are an indicator of the overall health of the economy. Regarding the April GST collection data, KPMG country director Abhishek Jain said the highest GST collection so far reflects the strength of the domestic economy.

Consumption tax implemented in 2017

The government implemented consumption tax nationwide on July 1, 2017. Following this, 17 taxes and 13 taxes from the central and state governments were abolished. After the end of seven years of consumption tax, the Ministry of Finance announced the achievements made in the past seven years.

GST is an indirect tax. Implemented in 2017, it replaced various previous indirect taxes (VAT), service tax, purchase tax, excise tax and many other indirect taxes. GST has four tax rates of 5%, 12%, 18% and 28%.

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