GST Council has reduced tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks. With this, only 28 goods are left in the highest 28 per cent tax bracket. Monitors and TV screens up to 32-inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.
GST on movie tickets costing up to 100 rupees was cut to 12 per cent from 18 per cent, while tickets over 100 rupees will attract 18 per cent tax, against 28 per cent earlier.
Briefing media after the meeting of the Council in New Delhi last evening, Finance Minister Arun Jaitley said, accessories for carriages for specially-abled persons have been brought down to 5 per cent. He said, the annual revenue implication of the rate cuts will be 5 thousand 500 crore rupees.
Mr Jaitley also said, the services supplied by the banks to Jan-Dhan account holders will be exempted from GST. He said, now 28 percent slab rate is applicable on cement and auto parts and luxury items like Air Conditioner and dishwasher.
The new GST rates will be effective from the 1st of next month.
The Council also approved a 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.