GST Council Meeting Today: GST Sets Rates From 28 Per Cent To 5 Per Cent On Most Items, Replacing An Array Of Central And State Duties.

GST Council Meeting Today: GST Sets Rates From 28 Per Cent To 5 Per Cent On Most Items, Replacing An Array Of Central And State Duties.

GST Council Cuts Rates On TVs, Movie Tickets; Cement, ACs Left Untouched : News Date 22-12-2018

NEW DELHI: Finance Minister Arun Jaitley on Saturday said that six items have been removed from the 28 per cent tax bracket under the Goods and Services Tax (GST) regime.

The Goods and Services Tax (GST) Council on Saturday slashed rates on 23 items such as televisions and movie tickets while keeping tax rate on cement and auto parts unchanged. Additionally, the Council proposed to cut GST rates on six of the items from 28 percent to 18 percent. Retreated Tyres, video games and sporting equipment, movie tickets, billiards and snookers and lithium battery power banks will attract 18 percent GST.

Wheelchair accessories too have been proposed to be brought under 5 percent bracket from 28 percent.

Recommendations of the GST Council’s fitment committee on rate rationalisation and balancing revenue flows were considered during the meeting, FM Arun Jaitley said.

Cement rate was left unchanged at 28 percent during the 31st meeting of the GST Council as it has huge revenue implications. Cutting rates on cement and auto parts would cost the exchequer a Rs 13,000 crore and Rs 20,000 crore loss, respectively, Jaitley said.

There were 34 items in the 28 per cent tax bracket which included luxury and 'sin goods' till now. However, the GST Council in its meeting on Saturday decided to take out 6 items from this list. Today's GST rate reduction will have an overall impact on revenue of Rs 5500 crore, said Jaitley. 

New return filing system will be started on trial basis from April 1, to be implemented mandatorily by July 1. Due date for GST Annual Return and Audit Report extended till 30th June 2019. 

Finance Minister, Arun Jaitley said that the recommendations by the fitment panel have been considered in today's meet. 

GST rate on special flights for pilgrims lowered for economy at 5 percent and business class at 12 percent. 

* Air conditioners, dishwashers largely used by upper segment of society, left at 28%. 

* GST for cinema tickets less than Rs 100 reduced from 18% to 12%, for tickets above than Rs 100, GST reduced from 28% to 18%. 

* The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items  .. 

IIM courses and Bank charges(savings bank, Jan Dhan Yojana ) has been exempted. 

* New return filing system will be started on trial basis from April 1, to be implemented mandatorily by July 1. Due date for GST Annual Return and Audit Report extended till 30th June 2019. 

There were around 226 goods in the 28 per cent category when Goods and Services Tax (GST) was implemented on July 1, 2017.

Cement rate reduction has not been taken up as it has huge revenue implication ..

GST Council Meeting Today: GST Sets Rates From 28 Per Cent To 5 Per Cent On Most Items, Replacing An Array Of Central And State Duties.

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