NEW DELHI (TIP): The Goods and Services Tax (GST) Council has reduced the rates on 29 goods and 53 categories of services, Finance Minister Arun Jaitley said following the Council’s meeting on Jan 18.

Against the backdrop of declining GST collections and waning compliance, the Council also discussed in detail various approaches to ease the return filing compliance burden, and the need for the implementation of anti-evasion measures.

Some of the services for which the rates have been cut include tailoring (18% to 5%), admission to theme parks (28% to 18%), and petroleum and natural gas mining and exploration (18% to 12%). The goods on which the rates have been reduced include biodiesel buses used for public transport (28% to 18%), sugar boiled confectionery, biodiesel, drinking water packed in 20 litre containers (all from 18% to 12%), and LPG supplied to domestic consumers by private distributors (18% to 5%). The new rates would come into effect on January 25.

“Rates have again been rationalised on few items, which is a step in the right direction,” Pratik Jain, Leader, Indirect Tax at PwC India, wrote in a note. More cuts to come “One would expect that over the next few months, this process would continue, particularly with respect to 28% category, which should only be for select luxury and demerit products,” he wrote.

Jaitley said that while the latest round of rate reductions would have an affect on the Centre’s revenues, the impact would be small.