GST Rate Cut - 23 Items Gets Cheaper in 31st Council Meeting
by Kanika Sharma 3.29K
The Goods and Service Tax (GST) Council in its 31st council meeting on 22nd 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 1st 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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