GST Council Meet: Movie Tickets, TVs And More Get Cheaper

GST Council decided to cut rates on various items like 32-inch television sets, movie tickets, power banks and lithium ion batteries among others things at the 31st GST Council meeting in New Delhi.

Here are the key highlights of Finance Minister Arun Jaitley’s press conference held after the GST Council meeting:

• Rates have been cut on a total of 23 items. The new rates will be applicable from 1 January 2019.
• Six items have been brought down from 28 percent to 18 percent and one item from 28 percent to 5 percent.
• Jaitley further said that three items have been brought from the 18 percent category to 12 percent; one item from 18 to 5 percent and the rest from 12 to 5 and 12 to nil categories.
• Monitors and television screens up to 32 inches, retreaded tyres, power banks of Lithium-ion batteries have been brought down from 28 percent to the 18 percent slab. Accessories for carriages for disabled persons have been brought down to 5 percent.
• Digital cameras, video recorders, pulleys, transmission shafts and cranks, gear boxes, video game consoles are the other items pruned from 29 percent to the 18 percent slab.
• Cork roughly squared or debagged, articles of natural cork and agglomerated cork have been brought down to 12 percent from 18 percent.
• Marble rubble is down to 5 percent from 18 percent, while natural cork, walking stick and fly ash blocks are now in the 5 percent slab from 12 precent.
• Movie tickets are set to get cheaper. Tickets up to Rs 100 will now be taxed at 12 percent, as opposed to 18 percent earlier. While tickets above Rs 100 have been brought under the 18 percent tax slab from 28 percent.
• GST rate on special flights for pilgrims lowered for economy at 5 percent and business class at 12 percent.

• The services supplied by the banks to Jan Dhan account holders will now be exempted from GST.
• Books on music, frozen vegetables, branded and put in containers, and provisionally preserved vegetables which are unsuitable for immediate consumption have been brought down from 5 percent to the nil category.
• A composition scheme will be framed for small service suppliers.
• Total revenue impact on reduction of rates is Rs 5,500 crore for full financial year.
• A new return filing system will be started on a trial basis from 1 April, and will be implemented by 1 July.
• Cement, which brings the government Rs 13,000 crore in revenue has been left at the peak rate. The tax rate on 13 auto part items that fetch around Rs 20,000 crore in revenue annually, has also been left unchanged at 28 percent.
• Some of the issues on taxation on residential properties will be discussed in the next meet in January.