Following the crucial GST Council meet on Saturday, Union Finance Minister Arun Jaitley said that six items have been removed from the 28 per cent tax bracket under the Goods and Services Tax (GST) regime.
Prime Minister Narendra Modi in a tweet hinted that the GST council may again bring down rate of several items including ‘new pneumatic tyre of rubber’ (automobile tyre), digital camera, air conditioners, dish washing machine, set top box for TV, monitors and projectors as well as construction item like cement.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
But despite the PM’s hint before the GST council meet, cement has not been removed from the 28 pc tax category which has made the people of the country including that of the Northeast upset as cement no longer remains a luxury item and is used as a building material by all.
Prime Minister Narendra Modi earlier said: “All things related to common man will be 18 per cent or below that.”
Prime Minister Narendra Modi in a tweet hinted that the GST council may again bring down rate of several items including ‘new pneumatic tyre of rubber’ (automobile tyre), digital camera, air conditioners, dish washing machine, set top box for TV, monitors and projectors as well as construction item like cement.
Ready for a challenge? Click here to take our quiz and show off your knowledge!
Also read: Northeast: Hospitals may have to split medicines and services bills for GST
A report published on Saturday by The Economic Times stated that there were 34 items in the 28 per cent tax bracket which included luxury and ‘sin goods’ till now.
The GST Council in its meeting on Saturday decided to take out 6 items from the list of 28 per cent tax bracket. Jaitely said, the GST rate reduction will have an overall impact on revenue of Rs 5500 crore.
The report also stated that the new return filing system will be started on trial basis from April 1 and it will implemented by July 1.
Good news for the tax payers as the due date for GST Annual Return and Audit Report has been extended till June 30, 2019.
The report quoted Finance Minister Jaitley as saying that the recommendations by the fitment panel have been considered in Saturday’s meet.
As per the report, here are the key points:
* 28 items have been kept in 28 per cent slabs, which are mainly luxury and sin products.
* GST rate on special flights for pilgrims lowered for economy at 5 percent and business class at 12
percent.
* The GST Council has also decided to slash tax rate on parts and accessories for the carriages for disabled persons from 28 per cent to 5 per cent.
* The Council has decided that 5 per cent would be levied on renewable energy devices and parts for their manufacture.
* Air conditioners, dishwashers largely used by upper segment of society, left at 28%.
* GST for cinema tickets less than Rs 100 reduced from 18% to 12%, for tickets above than Rs 100,
GST reduced from 28% to 18%.
* The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the
highest tax bracket, thereby leaving only 28 items in the slab.
* Power bank of Lithium ion batteries, video games, small sport related items, accessories for
carriages for disabled removed from 28% slab.
* Music books and vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in an unit container and vegetables provisionally preserved but unsuitable in that State
* 13 items of automobile parts, 8 items of cement industry will remain under the 28 per cent.
* 6 items have been moved from 28 per cent slab.
*Third party insurance premium of goods carrying vehicles has been reduced from 18 per cent to 12
per cent.
* IIM courses and Bank charges(savings bank, Jan Dhan Yojana ) has been exempted.
* New return filing system will be started on trial basis from April 1, to be implemented mandatorily by July 1. Due date for GST Annual Return and Audit Report extended till 30th June 2019.
It has been reported that around 226 goods were in the 28 per cent tax category when Goods and Services Tax (GST) was implemented on July 1, 2017.
The report quoted Thomas Isaac, Finance Minister, Kerala, as saying that cement rate reduction has not been taken up as it has huge revenue implications.
Prime Minister Narendra Modi on December 18 had announced that the Central Government was aiming to bring 99 per cent of items below the 18 per cent GST slab and warned of stringent action against defaulters of bank loan and fugitives.
His announcement, however, was not very well- received with West Bengal Finance Minister Amit Mitra saying,“The statement made by the Prime Minister on December 18 just before the GST Council meeting on December 22 undermines the constitutional authority of GST Council as it pre-empts the decision making authority of the Council.”