Stainless steel traders in the capital sought the placement of utensils and cutlery under the same bracket within GST taxation framework.
The new GST regime, set for a July 1 rollout, currently places the two products under different categories with varying tax slabs of 12 percent for utensils and 18 percent for cutlery.
Under the GST regime, services will be taxed under four rate slabs of 5 percent, 12 percent, 18 percent and 28 percent. This multiple rate structure is a paradigm shift from the current regime, which taxes services at a single rate of 15 percent. The reason behind this move is to ensure that different economic classes are not subject to tax at the same rate.
Vijay Malik, president of Delhi Stainless steel cutlery Association, while highlighting the problem, pointed out that despite utensils and cutlery being similar and supplementary throughout the entire manufacturing process as well as in their usage, have been kept under different tax slabs.
The association while reasoning, also pointed out that both products are sourced from the same raw material, a flat sheet or coil, and share the same excise and custom duty rates as well.
“The distinction of putting these two supplementary products under different heads will not only affect the end consumer but also create administrative evils,” Malik said.
The rates under GST have been decided on the basis of common use items and standard items.
Billed as India’s most ambitious reforms move, GST will stitch together a common national market, dismantle fiscal barriers among states and consolidate a patchwork of local and central duties into a single levy.
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