The Goods and Services Tax (GST) Council is likely to convene a meeting within the next 15 days to consider reducing the indirect tax on air and water purifiers to 5 per cent, amid growing public health concerns, people privy to the development said.The Council — which is mandated to meet at least once in a quarter — last met in September to announce major rate rejig. Any reduction on purifiers would also need consensus among state finance ministers.
The Council is expected to examine a proposal to bring down the GST rate on these products from 18 per cent to 5 per cent by reclassifying them as essential goods rather than discretionary consumer items, the people cited above said.
An email sent by Business Standard to the finance ministry and the GST Council Secretariat seeking clarity on the timing of the meeting and the scope of the rate rationalisation did not elicit response till the time of going to press.
Apart from air and water purifiers, the Council may also deliberate on cutting GST on certain insecticides used for domestic purposes and rodenticides (used to kill rats, mice etc.), which currently attract an 18 per cent tax rate.
It also comes against the backdrop of an ongoing hearing on the matter in the Delhi High Court.
On December 24, the high court asked the Centre to convene a GST Council meeting, virtually if not physically, at the earliest to consider cutting or abolishing GST on air purifiers, citing worsening air quality in the National Capital Region. The Centre, however, told the court that such a move could “open a Pandora’s box”.
Source: Business Standard
