GST Return Filing - File GSTR-3B

GST Rate Cut - 23 Items Gets Cheaper in 31st Council Meeting

By Kanika Sharma

( 3.29K Views) December 24, 2018

The Goods and Service Tax (GST) Council in its 31^st council meeting on 22^nd December 2018 reduced the rates on 23 items.

The following changes in GST rates on items have been made:

Rates reduced from 28% to 18%,
28% to 5%
18% to 12%
12% to 5%
5% to Nil.

The revised rates are effective from 1^st January 2019.

The fresh rate rationalisation is the government’s attempt to streamline GST and make it more people- friendly. Many items including television, computers and auto parts will be cheaper now.

Here is the list of items on which GST rate has been slashed:

S.No.	List of Goods/ Services	Changes in Tax rate
1.	Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS code 8483	28% to 18%
2.	Power banks of lithium-ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium-ion battery.	28% to 18%
3.	Re-traded or used pneumatic tyres of rubber	28% to 18%
4.	Monitors and TVs of up to screen size of 32 inches	28% to 18%
5.	Digital cameras and video camera recorders	28% to 18%
6.	Video game consoles and other games and sports requisites falling under HS code 9504	28% to 18%
7.	Parts and accessories for the carriages for disabled people	28% to 5%
8.	Cork roughly squared or debagged	18% to 12%
9.	Articles of natural cork	18% to 12%
10.	Agglomerated cork	18% to 12%
11.	Marble rubble	18% to 5%
12.	Natural cork	12% to 5%
13.	Walking stick	12% to 5%
14.	Fly ash blocks	12% to 5%
15.	Music Books	12% to Nil
16.	Vegetables (uncooked or cooked by steaming or boiling), frozen, branded and put in a unit container.	5% to Nil
17.	Vegetable provisionally preserved but unsuitable for immediate consumption.	5% to Nil
18.	GST rate on renewable energy devices & parts for their manufacture falling under chapter 84, 85 or 94 of the tariff.	5%
19.	Cinema tickets > Rs 100	28% to 18%
20.	Cinema tickets < or = Rs 100	18% to 12%
21.	Third party insurance premium of goods carrying vehicles	18% to 12%
22.	Services supplied by banks to Basing Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)	Exempted
22.	Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements	5%

Further luxury items and sin goods will remain in the 28% slab including auto parts and cement.

There are now 28 items left in the 28% bracket including luxury and sin items. 13 items are from automobile parts and one is cement. The revenue from Cement is Rs 13,000 Crores and from automobile parts is Rs 20,000 Crores. If automobile parts and cement are brought down from 28% to 18% then it will greatly impact the revenue.

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