31st GST Council Meet: Tax on 33 items reduced from 18%
The much-awaited 31st GST Council meeting was held today at the Vigyan Bhawan, New Delhi. There is no doubt that the expectations were really high from the GST Council regarding the GST rate cuts on several items that are mostly categorised as essential commodities from 28% to 18%.
The current meeting of GST Council comes after the recent announcement made by the honourable Prime Minister of India Sh. Narendra Modi, on 20th December 2018, indicated at further simplifying GST rates, saying that his government wants to ensure that 99% items attract sub-18% GST slab.
With a view to further rationalise the Goods and Services Tax structure for taxpayers and traders having GST registration, the Prime Minister of India Sh. Narendra Modi had announced that the government will soon include 99% goods under the sub-18% GST slab. In order to execute the said changes in GST, the government had announced that GST rate cuts were likely to be implemented in the 31st GST council meeting, which was scheduled to be held today.
The GST Council meeting has indeed sought to rationalize the GST rates amid lower budgeted collection as compared to the projected rate.
#1. Which goods have witnessed GST Rate cuts?
- It has been reported that GST rates have slashed on 33 essential commodities from 18 to 12 and 5%. That means, 33 items have been removed from 18% GST slab.
- Besides, 6 items have been removed from 28% GST slab out of 34 reserved for the same.
#2. Which are the goods removed from 28% GST slab?
There are 6 items that have been recently removed from 28% GST slab out of 34 such items. These have been listed as below-
- Pulley gearboxes,
- PC Monitors,
- Televisions of 32 inches screen,
- Digital cameras,
- Video game consoles, where GST is brought down to 18% from 28%.
- Parts & accessories for carriages for differently-abled people, where GST is brought down to 5% from 28%.
Now, only the luxury & sin goods will remain in the 28% Slab rate.
#2. Which are the goods removed from 18% GST slab?
Among those items where GST has slashed from 18 to 12 and 5%, most significantly we have-
- Cinema tickets, up to â‚¹100 where GST has been brought down from 18% to 12%.
- However, the Movie Tickets costing above â‚¹100 were hitherto under the 28% slab. The GST rate on such tickets will now 18% only.
- The GST Council has also recommended a reduction of GST on solar power plants and other renewable energy items.
#3. Where have GST rates remained unchanged?
- Importantly, the GST on Cement was left as it is, at 28 % during 31st GST Council meeting.
- This is done so because it would have huge revenue implications and would cause much distress to the suppliers of building material having GST registration.
- Finance Minister Sh. Arun Jaitley has pointed out that reducing rates on cement and auto spare parts would cost the exchequer a gross loss of â‚¹13,000 crore and â‚¹20,000 respectively.
- Apart from that, GST rates for automobiles, molasses and dishwashers were also left unchanged.
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