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Key Points:
GST Council reduced tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy.
The reduced rates are likely to come into effect from January 1, 2019
Of the 23 goods and services on which rates have been slashed, tax rate on seven items in the 28 per cent slab has been brought down. With this, only 28 goods are left in the highest 28 per cent tax bracket.
GST on goods lowered from 28% to 18% include pulleys, transmission shafts and cranks, gear boxes, retreaded or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles.
GST on movie tickets costing up to Rs 100 cut to 12 per cent, from 18 per cent, tickets over Rs 100 to attract 18 per cent GST, against 28 per cent earlier. This will have annual revenue implication of Rs 900 crore.
Monitors and TV screens up to 32 inches and power banks will attract 18 per cent GST, as against 28 per cent earlier. The annual revenue loss on account of this would be Rs 1,500 crore.
The rate rationalization comes after Prime Minister Narendra Modi on Tuesday indicated that the 28 per cent slab of GST would only be restricted to a few select items, such as luxury and sin goods and said his government wants to ensure that ‘99 per cent items attract 18 per cent or lower GST.
Source: GST rate slashed on 23 items, more may follow next month - Times of India ►
GST tax cut: From TV to movie tickets, here’s full list of items that will get cheaper
GST Council reduced tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy.
The reduced rates are likely to come into effect from January 1, 2019
Of the 23 goods and services on which rates have been slashed, tax rate on seven items in the 28 per cent slab has been brought down. With this, only 28 goods are left in the highest 28 per cent tax bracket.
GST on goods lowered from 28% to 18% include pulleys, transmission shafts and cranks, gear boxes, retreaded or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles.
GST on movie tickets costing up to Rs 100 cut to 12 per cent, from 18 per cent, tickets over Rs 100 to attract 18 per cent GST, against 28 per cent earlier. This will have annual revenue implication of Rs 900 crore.
Monitors and TV screens up to 32 inches and power banks will attract 18 per cent GST, as against 28 per cent earlier. The annual revenue loss on account of this would be Rs 1,500 crore.
The rate rationalization comes after Prime Minister Narendra Modi on Tuesday indicated that the 28 per cent slab of GST would only be restricted to a few select items, such as luxury and sin goods and said his government wants to ensure that ‘99 per cent items attract 18 per cent or lower GST.
Source: GST rate slashed on 23 items, more may follow next month - Times of India ►
GST tax cut: From TV to movie tickets, here’s full list of items that will get cheaper
