Six items have been removed from the 28% tax bracket under the Goods and Services Tax (GST) regime, said Finance Minister Arun Jaitley on 22nd December.
34 items were there in the 28% tax bracket that included - luxury as well as 'sin goods' till date. But, the GST Council in its meeting yesterday decided to extract 6 items from this list, giving some relief to the consumers. Jaitley said the reduction in GST rate will have an overall impact on revenue of Rs 5500 crore.
The new return filing system will begin on trial basis from 1st April 2019 and that will be implemented mandatorily by 1st July. The due date for GST Annual Return and Audit Report has been extended till 30th June 2019.
The Finance Minister also informed that the suggestions by the fitment panel have been considered in the GST council meet.
Here are the key highlights:
1. 28 items have been placed in 28% slabs that are mostly luxury and sin products. And prices have been reduced for 22 items under this slab.
2. The GST rate on special flights for pilgrims has been reduced for economy at 5% while business class at 12%.
3. The GST meeting has also decided to cut tax rate on parts and accessories for the carriages for disabled people from 28% to 5%.
4. 5% would be levied on renewable energy devices and parts for their manufacturing.
5. Air conditioners, dishwashers mainly used by the upper section of society left at 28%.
6. GST on movie tickets less than Rs 100 has been lowered to 12% from the previous 18%. And for tickets more than Rs 100, GST has been reduced from 28% to 18%.
7. The council downsized the 28% slab by bringing down the tax rate on 7 items in the highest tax category, thus leaving only 28 items in the slab.
8. Power bank of Lithium ion batteries, small sport related items, video games, accessories for carriages for disabled persons also removed from 28 percent slab.
9. 13 automobile parts items and 8 items of cement industry will stay under the 28%.
10. Music books and vegetables, frozen, branded and kept in a unit container and vegetables temporarily preserved but not fit in that state for immediate consumption have been exempted from GST
11. The 3rd party insurance premium of goods carrying vehicles has been lowered to 12 %.
12. Bank charges (savings bank, Jan Dhan Yojana) and IIM courses have also been exempted.
When the Goods and Services Tax (GST) was implemented on 1st July 2017, there were about 226 goods in the 28% category.
Prime Minister Narendra Modi last week had announced the government is planning to bring 99% of items below the 18% GST slab. He also warned of strict action against the defaulters of bank loan and fugitives.
