GST Council slashes rates of 33 items; 28% slab now applicable to only 34 items

New Delhi,  Dec 22 (KNN) The Goods and Services Tax (GST)  Council on Saturday slashed the rates of 33 items which includes some consumer goods such as TV,  movie tickets,  air travel of pilgrims etc. 

After the meeting, Finance Minister Arun Jaitley announced that the 28 per cent slab will now be applicable only on 34 items, which are mainly luxury goods and sin items.

Jaitley said, "There are 28 items left in the 28 per cent bracket if we include luxury and sin items. 13 items are from automobile parts and one is cement. Cement's revenue is Rs 13,000 crore and automobile parts revenue is Rs 20,000 crore. If they are brought down from 28 per cent to 18 per cent implications are of Rs 33,000 crore."

Thus, there will be no tax cuts on cement and automobile parts.

The new tax rates will be effective starting January 1, 2019. The items that will get cheaper are: 

Monitors,  32-inch television screens, Tyres, Power banks of lithium-ion batteries, Movie tickets, Air travel of pilgrims, Pulleys, transmission shafts, Gear boxes, Video game consoles and other games and sports requisites,  Digital cameras, video recorders, Parts and accessories for carriages meant for disabled persons, Walking stick, Vegetables, frozen vegetables (branded and put in a unit container), Flyash blocks, Music books, Solar power generating plant, Renewable energy devices, Insurance premium on goods-carrying vehicles, Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders. 

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.

Jaitley said that the recommendations by the fitment panel have been considered in today's meet. (KNN Bureau)