GST cut on 23 items: TVs, movie tickets get cheaper
- Author: Eleanor Harrison Dec 24, 2018,
Dec 24, 2018, 2:42
Earlier, emerging out of the GST council meeting, V Narayanasamy, Puducherry Chief Minister, told ANI that "the Goods and Services Tax (GST) Council on Saturday made a decision to cut rates of 33 items from 18 percent to 12 percent and 5 percent".
Finance Minister Arun Jaitley on Saturday expressed confidence of meeting the fiscal deficit target of 3.3 per cent of GDP for the current fiscal despite revenue loss due to the reduction in GST rates.
V Narayanasamy, Puducherry Chief Minister, said, " 33 items have come down from 18 per cent to 12 per cent and 5 per cent as they are common man's consumption goods.
GST on walking stick was reduced from 12 per cent to 5 per cent. GST on music books cut from 12 per cent to zero.
After adjusting for credits on inputs used, the effective per-GST tax incidence on such housing property was 15-18%.
"The GST Council slashes tax rate on 7 goods in the 28% slab; only 28 items are now left in the highest bracket, " FM Arun Jaitley said. "A rationalised GST rate would definitely result in higher number of houses, more km of roads and better infrastructure at the same cost". Currently, these products are under the 28% tax slab and it is an expectation that they might come under the 18% slab. So therefore we followed a more realistic pragmatic and a prudent policy that as the revenues move up and affordability increases we gradually bring it down.
"The original demand by Congress that all goods should come down to 18 per cent and below except luxury items has been agreed by the Government". That could mean cement, marble, air conditioners, dishwashers and other items becoming cheaper. GST rates on movie tickets have been changed earlier also.
Traders' body Confederation of All India Traders (CAIT) also welcomed the reduction in GST tax rates on various items and said it is a progressive step in rationalising and simplifying the tax structure. Meanwhile, tax on cinema tickets of up to Rs 100 has been brought down to 12 percent.
This will have annual revenue implication of Rs 900 crore.
The other items which will now attract 18 per cent tax include pulleys, transmission shafts and cranks, gear boxes, retreated or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles.
What's out of the 28 per cent slab?
"Considering the volatility in the global crude oil prices, petroleum products should also be considered under the GST to rationalise the impact of indirect taxes by subsuming VAT (Value Added Tax) and excise duties in GST", the industry body said in a statement quoting Talwar.