The GST Council also removed four items from 18 per cent slab. Out of these four, three were moved to the 12 per cent slab while one was shifted to 5 per cent.
Our Correspondent / New Delhi
After the GST Council meet it was decided that GST of 6 items will be reduced from 28 percent to 18 percent slab. Briefing media on decisions taken in GST Council Meeting in Delhi, Finance Minister Arun Jaitley today said said these items include TV, tyre, power bank and video games.
He said, now 28 percent slab rate is applicable only on 28 items, which are luxury items like cement, auto parts, AC and dishwasher.
Accessories for carriages for specially abled persons have been brought down to five percent. The Finance Minister said GST on movie ticket up to 100 rupees has been brought down to 12 percent and above 100 rupees has been brought down to 18 percent from 28 percent.
GST rate on special flights for pilgrims has been lowered for economy at 5 percent and business class at 12 percent.
The services supplied by the banks to Jan-Dhan account holders will be exempted from GST. The new GST rates will be effective from 1st January next year.
Mr Jaitley informed that the Law Fitment Committee will take a view on GST on real estate in the next meeting.
The GST Council meeting has also approved proposal to form a seven Member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the states.
The study would include the underlying reasons for deviation from the revenue collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.
GST meet outcome
The 28 per cent slab is restricted to only luxury and sin goods, apart from auto parts and cement — tax rates on which could not be cut due to the high revenue implication.
The GST Council also removed four items from 18 per cent slab. Out of these four, three were moved to the 12 per cent slab while one was shifted to 5 per cent.
The three items which will now attract a 12 per cent tax under GST, instead of the existing 18 per cent, include articles of natural cork, and corks roughly squared or de-bagged. Marble rubble was shifted from 18 per cent to 5 per cent tax slab.
GST on movie tickets costing up to Rs. 100 has been cut to 12 per cent from 18 per cent, while tickets over Rs. 100 will attract 18 per cent tax, against 28 per cent earlier.
This will have a revenue implication of Rs. 900 crore, Mr Jaitley said.
Monitors and TV screens up to 32-inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.
The finance minister said rate rationalisation is an ongoing process and 28 per cent bracket is gradually moving to sunset.
“The next target will be rate rationalisation in cement as and when affordability improves,” he said.
The move on GST rates will lead to an annual revenue loss of Rs. 5,500 crore, Mr Jaitley said.