At GST Council meet, tax rates on 33 items reduced
At its 31st meeting in New Delhi, headed by Union Finance Minister Arun Jaitley, the GST council decided to move 33 items from 18% GST slab to 12% and 5%. It was decided only 34 luxury items will be taxed at 18% or more. Before the meeting, Haryana Finance Minister Captain Abhimanyu said integrating tax rates has been GST council's goal. Here's more.
Tamil Nadu Finance Minister Jayakumar said lithium-ion battery, VCR and tires were brought from 28% slab to 18% slab. Items like vehicle parts, TV, cement were taken out from 28% slab, said Uttarakhand Finance Minister Prakash Pant. However, Kerala Finance Minister Thomas Isaac said GST rate on cement and auto parts were unchanged. He said they contributed to Rs. 24,000 crore in revenue.
"Prime Minister Narendra Modi wants that rates of GST be around 18%. It is good if bare minimum products are kept in the 28% slab, keeping in mind the scope of the GST. GST council and all the representatives will decide in the interest of the country rising above politics," Captain Abhimanyu said.
After the meeting, Jaitley addressed media to make key announcements. He said monitors/screens up to 32 inches, gearboxes, retreaded tires, power banks of lithium-ion batteries, video games and other sports-related items, were brought from 28% slab to 18%. Tax on cinema tickets (up to Rs. 100) has been brought to 12% and those costing more than Rs. 100, GST was reduced to 18%.
Further, Jaitley said, "Recommendations of the Fitment Committee were heard. Expansive discussion took place on revenue." He said manufacturing states like Maharashtra and West Bengal showed improvement. He added states were compensated with Rs. 48,000cr for losses incurred due to GST. Next year, the losses could amount to Rs. 60,000cr. He said a state-by-state comparison was done and that a stiff target faces them.
Finance Minister Arun Jaitley on the decisions taken in GST Council meet: The Law Fitment Committee will take a view on GST on real estate in the next meeting. There is a consensus that something needs to be done on this. pic.twitter.com/OKbCl5sHOG— ANI (@ANI) December 22, 2018