New Delhi, Jan 1: Items of mass consumption items got cheaper from the New Year on Tuesday after the government notified the reducted GST rates decided by the GST Council at its meeting here late last month.
At its 31st meeting on December 22, the Goods and Services Tax (GST) Council chaired by Union Finance Minister Arun Jaitley agreed to cut tax rates on 23 goods and services.
Computer monitors, TV screens, video games, lithium-ion power banks, retreaded tyres, wheelchair accessories and cinema tickets are among products that have been removed from the highest 28 per cent bracket of the GST regime.
Among the items consumed by the common man, only cement continues to remain, alongwith luxury and 'sin' goods, in the 28 per cent bracket as the GST Council brought down the rates of all other categories of goods in a further rationalisation that left only 27 items in the highest tax slab.
Second-hand tyres, video games, digital cameras, video camera recorders, monitors and TV screens up to 32 inches and lithium battery power banks will now attract 18 per cent GST.
The GST on wheelchair accessories has been brought down to 5 per cent from the existing 28, which will also allow the payment of input tax credit that is not possible with zero tax, Jaitley told reporters here following the Council meeting.
Airconditioners, dishwashers and large screen TVs have been left untouched at the highest rate.
While the GST on third party insurance on goods-carrying motor vehicles has been cut from 18 to 12 per cent, cinema tickets up to Rs 100 have also been granted a similar reduction. Movie tickets costing more that Rs 100 have been brought down from 28 to 18 per cent.
Items which will attract lower GST rate of 5 per cent include marble rubble, natural cork, walking sticks and fly ash blocks.
Music books and forzen and preserved vegetables have been exempted from GST.
Bank services to Jan Dhan Yojana account holders will also not attract the GST.
Nearly 1,250 goods and services have been categorised under the four tax slabs of 5, 12, 18 and 28 per cent under the GST regime.
A total of 17 items and six services have been reduced which will result in a revenue impact of Rs 5,500 crore for the full fiscal.
Taking cement and automobile parts away from the 28 per cent slab would mean a combined revenue loss of Rs 33,000 crore, which the Council felt is "too steep" to be considered at this juncture, Jaitley said.
This major tax rationalisation ahead of the 2019 general elections comes after Prime Minister Narendra Modi recently promised to bring 99 per cent the goods under the 18 per cent or lower GST slab.
GST Rate Cut from 28 to 18%
* Pulleys, transmission shafts and cranks, gear boxes etc.
* Monitors and TVs of upto screen size of 32 inches
* Re-treaded tyres
* Power banks of lithium ion batteries
* Digital cameras and video camera recorders
* Video game consoles and other games and sports requisites
GST rate cut from 28 to 5%
*Parts and accessories for the carriages for disabled persons
GST rate cut from 18% to 12%
*Cork roughly squared or debagged
*Articles of natural cork
* Agglomerated cork
GST rate cut from 18% to 5%
GST rate cut from 12% to 5%
* Natural cork
* Walking Stick
* Fly ash Blocks
GST rate cut from 12% to Nil:
GST rate cut from 5% to Nil
*Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container
*Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
Reduction in GST rates/exemptions on services:
*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%.
*GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
*Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted
*Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).
News24 Bureau/ IANS