National

GST Council cuts rates on several goods

NEW DELHI, DEC 22 (AGENCIES) | Publish Date: 12/22/2018 11:50:30 AM IST

In a relief to the common man, the GST Council Saturday cut rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks.

The annual revenue implication of the rate cuts would be Rs 5,500 crore, Finance Minister Arun Jaitley said. The council rationalised the 28% slab by bringing down tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.

Briefing reporters after the 31st GST Council meeting, Jaitley said rate rationalisation is an ongoing process. “28% bracket is gradually moving to sunset...The next target will be rate rationalisation in cement as and when affordability improves,” he said.

Now, the 28% slab is restricted to only luxury and sin goods, apart from auto parts and cement -- tax rates on which could not be cut due to the high revenue implication.

GST on movie tickets costing up to Rs 100 was cut to 12% from 18%, while tickets over Rs 100 will attract 18 per cent tax, against 28% earlier. 

Monitors and TV screens up to 32-inches and power banks will attract 18% GST, as against 28% earlier. The new tax rates will come into effect from January 1, 2019.

THE LIST OF  ITEMS THAT WILL GET CHEAPER

GST slashed from 28% to 18%: Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483, monitors and TVs of up to screen size of 32 inches, re-treaded or used pneumatic tyres of rubber, power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium-ion battery.
Digital cameras and video camera recorders, video game consoles and other games and sports requisites falling under HS code 9504.
28% to 5%: Parts and accessories for the carriages for disabled persons
GST rate reduction on services: GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets up to Rs 100 from 18% to 12%.
GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at medical establishments, educational institutions, rehabilitation centers established by Central Government / State Government or Union Territories or entity registered under section 12AA of the Income-tax Act shall be exempted.
Services provided by GTA to Government departments/local authorities which have taken registration only for the purpose of deducting tax under Section 51 shall be excluded from payment of tax under RCM and the same shall be exempted.
Exemption on services provided by Central or State Government or Union Territory Government to their undertakings or PSUs by way of guaranteeing loans taken by them from financial institutions is being extended to guaranteeing of such loans taken from banks.
Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).
GST rate reduction on other goods (18% to 12%): Cork roughly squared or debagged, articles of natural cork, agglomerated cork.
18% to 5%: Marble rubble
12% to 5%: Natural cork, walking stick, fly ash blocks
12% to Nil: Music Books
5% to Nil: Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container, vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
Miscellaneous: Exemption from GST on supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
Exemption from GST on proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
Exemption from IGST/Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
Rate of 5%/18% to be applied based on transaction value of footwear
Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)

-Tags:#GST

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