Govt cuts GST rates on several items; TV sets, movie tickets set to get cheaper

Written by Newsroom Staff December 22, 2018 21:15

New Delhi: The Goods and Services Tax Council on Wednesday slashed tax rates for 33 items that have been reduced from 18 per cent to 12 and 5 per cent respectively, said Puducherry Chief Minister V Narayanasamy.


While addressing the media, Finance Minister Arun Jaitley said the GST Council approved the proposal to form a 7-member Group of Minister to study revenue trends and analyse 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,” he added.

Here’s all you need to know about the GST Slab

Prime Minister Narendra Modi had hinted towards further rationalising of the GST rates to place “99 per cent things” under sub-18 per cent GST slab.

While there is no clarity on the items that have been taken up by the GST Council for tax rate cut, it might consider a GST rate cut for air conditioners, television sets measuring between 28 and 32 inches, DSLR cameras, cement and tyres, among other things. There is a good chance that the GST Council might onsider slashing GST rates for plug-in hybrid cars too, which currently fall in the 28 per cent tax slab.

Here are some of the items that have been reduced from 28 per cent to 18 per cent:

  • Pulleys, transmission shafts and cranks, gearboxes, all of which fall under HS Code 8483.
  • Monitors and TVs of up to screen size of 32 inches.
  • Re-treaded or used pneumatic tyres of rubber
  • Power banks of lithium-ion batteries
  • Lithium-ion batteries are already at 18 per cent
  • Video game consoles and other games and sports requisites falling under HS code 9504.

 

The GST Council could also mull over the revenue position of the Centre and states, facilitating refund-related rules for exporters. The issue of handing over the ownership of the GST Network to a government-owned company could also be discussed. This proposal has already been approved by the Cabinet in September.