The goods and Services tax (GST) council on Saturday slashed tax rates of 23 items. Today’s GST rate reduction will have an overall impact on revenue of Rs 5500 crore, Finance Minister Arun Jaitley said.
The GST council on its 31st meeting announced a list of items whose the tax rate of which has been slashed down from 28% to 18% and 5%.
Key points of the meeting:
1. GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants attract applicable GST.
2. GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.
3. Tax rates of TV sets size of 32 inches, monitors and power banks have been slashed down from 28% to 18%
4. Parts and accessories for the carriages for disabled persons decreased from 28% to 5%
5. Services supplied by banks to customers holding basic saving bank deposit (BSBD) accounts under financial inclusion scheme Jan Dhan will be exempted from GST, the government said.
6.The finance minister said rate rationalisation is an ongoing process.
? CBIC (@cbic_india) December 22, 2018
The UPA had left behind a legacy of 31% indirect Tax on most items. The GST has already reduced 334 items to 12% and 18% slab. Wasn’t the 31% Tax an oppressive idea- a stupid one at that- Finance Minister Arun Jaitley.
With reduction of GST on movie tickets decreased to 18%, prominent members of the film industry welcomed the step in a positive way. Earlier this week Prime Minister Narendra Modi held a meeting with actors, directors and producers from the film fraternity.
Superb news for #IndianFilmIndustry. Cinema tickets upto Rs. 100 which were under 18% GST slab is brought down to 12% slab. Tickets above Rs. 100 were under the 28% slab. These tickets will now be under 18% slab. Thank you PM @narendramodi & officials for this great decision.??
? Anupam Kher (@AnupamPKher) December 22, 2018
Quick action and how! Within a few days of our meeting with hon. Prime Minister @narendramodi ji, the Government addressed our concern…GST for movie tickets to be reduced. A welcome move for the industry and audiences as well.
? Akshay Kumar (@akshaykumar) December 22, 2018
Heartfelt thank you to Honorable PM & the Govt of India for considering the request of the film industry for reduction in GST. If Indian cinema hopes to compete in the world market then we need the support of the Govt & Administration.
This is a great 1st step in that direction.
? Aamir Khan (@aamir_khan) December 22, 2018
Would like to thank our Prime Minister @narendramodi for the swift action on the GST rate on movie tickets….Great news at the year end! Thank you sir for your proactivity and support….. https://t.co/QEn303lBti
? Karan Johar (@karanjohar) December 22, 2018
Furthermore, attacking the opposition, Jaitley said, “Rahul Gandhi has been advocating a single slab GST for India. It is a flawed idea. A single slab GST can function only in those countries where the entire population has a similar and a higher level of paying capacity.”