The Goods and Services Tax India (GST) Council on Saturday removed seven items from the 28 percent tax bracket. 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 percent to 18 percent, one – parts and accessories for carriages for people with disabilities was moved from 28 percent to 5 percent, the government said in a statement. The new GST rates will take effect from January 1, 2019, Union Finance Ministry Arun Jaitley said.
Goods and Services Tax India (GST) Council 2019; 7 Items Moved 28% GST Rates List
- Now, the 28 percent 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 the high revenue implication.
- The GST Council also removed four items from 18 percent slab. Out of these four, three were moved to the 12 percent slab while one was shifted to 5 percent.
- The three items which will now attract a 12 percent tax under GST, instead of the existing 18 percent, include articles of natural cork, and corks roughly squared or de-bagged. Marble rubble was shifted from 18 percent to 5 percent tax slab.
- GST on movie tickets costing up to Rs. 100 has been cut to 12 percent from 18 percent, while tickets over Rs. 100 will attract 18 percent tax, against 28 percent earlier.
- This will have a revenue implication of Rs. 900 crore, Mr. Arun Jaitley said.
- Monitors and TV screens up to 32-inches and power banks will attract 18 percent GST, as against 28 percent earlier.
- The finance minister said rate rationalization is an ongoing process and 28 percent bracket is gradually moving to sunset.
- “The next target will be rate rationalization 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. Arun Jaitley said.
- GST, the government’s biggest tax reform, sets rates from 28 percent to 5 percent on most items, replacing an array of central and state duties. (With agency inputs)