The GST Council in its 28th meeting held Sunday cut tax rates on several general-use items such as TV, washing machine and refrigerators.

The new rates would come into effect from July 27.

The rate reductions is estimated to cost the government exchequer nearly Rs 7,000 crore.

Over the last one year, the Council, chaired by Union Finance Minister and comprising state ministers, has slashed rates in 191 items.

Now, only 35 goods are left in 28% tax bracket. The Council brought down tax rates to 18 per cent from 28 per cent on 15 items.

Reacting to the decision, FICCI President Rashesh Shah said the decisions taken by the GST Council since implementation of GST to bring continuous improvement and simplification in the GST regime are commendable.

"The rationalization in rates of various items in the meeting yesterday would benefit the nation. The decisions relating to simplification of returns and especially keeping the interests of small taxpayers are noteworthy. This would facilitate ease of doing business both for small and large taxpayers," added Shah. 

Many of the recommendations made by FICCI have also been approved by the GST Council and would go a long way in strengthening the confidence of the taxpayers under the GST regime. 

These decisions would indeed increase compliance, widen the tax base and are in the right direction to achieve the objectives of GST, said Shah.