Published on 13/11/2017 9:59:31 AM | Source: Dion Global Solutions Ltd.

Consumer products demand to rise with lowering of GST rates

Posted in Economy News| #Economy #GST

Experts have said that GST Council's decision to reduce tax rates of 178 items to 18 per cent from 28 per cent will push up demand for consumer products. As per reports, the Council reduced the rates for products such as detergents, shaving and after-shave items, deodorants, women cosmetics and chocolates, among others. "

These revisions in rates are expected to reduce prices and increase consumption and thereby bring growth for the consumer products and retail industry," EY India said. As per reports, Goods and Services Tax (GST) on 178 items were brought down to 18 per cent at the meeting of the Council today along with reduction in compliance burden.

The other decision relating to traders was doubling of turnover limit for composition dealers to Rs 2 crore. This will have a huge impact on the GSTN portal as well because there will be a big rise in taxable persons opting for the composition scheme and they will be required to file quarterly returns only.