PM Modi indicates GST may be cut from 28 per cent to 18 per cent

Mumbai/New Delhi: Indicating that further simplification of the GST is on the anvil, Prime Minister Narendra Modi said his government wants to ensure that 99 per cent items attract sub-18 per cent GST. He hinted that the 28 per cent slab of GST, that is applicable to 35 items at present, would only be restricted to a few select items, such as luxury and demerit goods. Addressing the Republic Summit in Mumbai, Mr Modi said, “Today, the GST system has been established to a large extent and we are working towards a position where 99 per cent items will attract the sub-18 per cent GST slab.” There are indications that cement, air-conditioners, computer screens, power banks, tyres and automobile equipment may get cheaper soon as the GST Council, which is meeting later this month, is looking to prune the list of items that attract 28 per cent GST, and place some of these items in the 18 per cent GST slab.

Other products which could see a cut in GST include digital cameras, video recorders and dishwashers. It is not clear if the tax on aerated drinks will also be brought down from 28 per cent. “Sin” products like cigarettes and pan masala are unlikely to be removed from the 28 per cent GST slab.