Government will reduce GST on water bottles and bicycles, these luxury items including shoes and watches will become expensive

GST: In the meeting, it was suggested to reduce the GST on water bottles of 20 liters and above from 18 percent to 5 percent. Apart from this, it was also recommended to reduce the GST on exercise notebooks from 12 percent to 5 percent. 

GST rates: The government has taken several major decisions today in the Group of Ministers meeting regarding GST rates. Rates will be reduced on 20-litre packaged water bottles, bicycles and exercise notebooks.

At the same time, it has been decided to increase the tax rates for luxury shoes, watches and beauty products. The Group of Ministers has taken this decision to rationalize the GST rate. All the new changes will give the government a revenue gain of about ₹ 22,000 crore.

There will be a benefit of 22 thousand crores

According to news agency Bhasha, this decision has been taken in the meeting of the Group of Ministers held on Saturday to rationalize the GST rate. An official aware of the matter said that this decision of the GoM constituted on GST rate rationalization headed by Bihar Deputy Chief Minister and Convenor of the Group of Ministers Samrat Chaudhary will result in a revenue benefit of Rs 22,000 crore. 

The GoM suggested reducing the GST on water bottles of 20 litres and above from 18 per cent to 5 per cent. Apart from this, it was also recommended to reduce the GST on exercise notebooks from 12 per cent to 5 per cent. 

Decision to reduce GST on bicycles too

Similarly, there is a suggestion to reduce GST on bicycles costing less than Rs 10,000 from 12 percent to 5 percent. The GST Council will take the final decision on these recommendations. The GoM also suggested increasing GST from 18 percent to 28 percent on shoes costing more than Rs 15,000 and wrist watches costing more than Rs 25,000.

The six-member GoM also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, Karnataka Revenue Minister Krishna Byre Gowda and Kerala Finance Minister KN Balagopal.