GST Council sets rates from 28 per cent to 5 per cent on most items.
NEW DELHI:MNN: GST Council on Saturday removed seven items from the 28 per cent tax bracket.
Many items including television, computers and various auto parts will be cheaper now.
While six items, such as monitors and TVs up to 32 inches, digital cameras and video game consoles, were shifted from the tax slab of 28 per cent to 18 per cent, one – parts and accessories for carriages for people with disabilities – was moved from 28 per cent to 5 per cent, the government said in a statement.
Some items in the 5 per cent bracket have been moved to 0 per cent.
Now, the 28 per cent 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 high revenue implication.
The GST Council also removed four items from 18 per cent slab.
Out of these four, three were moved to the 12 per cent slab while one was shifted to 5 per cent.
The three items which will now attract a 12 per cent tax under GST, instead of the existing 18 per cent, include articles of natural cork, and corks roughly squared or de-bagged.
Marble rubble was shifted from 18 per cent to 5 per cent tax slab.
GST on movie tickets costing up to Rs. 100 has been cut to 12 per cent from 18 per cent, while tickets over Rs. 100 will attract an 18 per cent tax, as against 28 per cent earlier.
The Federation of Indian Chambers of Commerce and Industry (FICCI) welcomed GST Council’s move to revise rates of cinema tickets to 12 per cent and 18 per cent for tickets below INR 100 and over 100 respectively.
Commenting on the development, FICCI Assistant Secretary General Leena Jaisani said, “The move will help boost the industry and bring back the audience to theatres.
This will have a revenue implication of Rs. 900 crore, Mr Jaitley said.
Actor Anupam Kher welcomes slashed GST rates on movie tickets.
“This is a historic day for Indian film industry that GST rates have been cut down from 18% to 12%.
The credit for this move goes to Prime Minister Narendra Modi.
Films not only entertain but also boost tourism,” he said.
Monitors and TV screens up to 32-inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.
Services supplied by banks to customers holding basic saving bank deposit accounts under financial inclusion scheme Jan Dhan will be exempted from GST, the government said.
The finance minister said rate rationalisation is an ongoing process.
The next target will be rate rationalisation in cement as and when affordability improves,” he said.
The move on GST rates will lead to an annual revenue loss of Rs. 5,500 crore, Mr Jaitley said.
GST, the government’s biggest tax reform, sets rates from 28 per cent to 5 per cent on most items, replacing an array of central and state duties.