GST Council Meet: The Goods and Services Tax (GST) Council on Saturday announced deduction in prices of goods such as television sets, cinema tickets, video games, power banks etc from the top 28 per cent slab to 18 per cent. Chaired by Finance Minister Arun Jaitley, the 31st GST Council meeting took place in the national capital and announced that GST rates on six out of 34 items have been slashed from the top 28 per cent slab. Speaking to reporters after the meeting, Jaitley informed that the 28 per cent slab rate is now applicable on only 34 items which fall under the luxury segment.

Electronic products such as monitors and TV screens, tyres, power banks (of lithium-ion batteries) have brought down from 28 per cent to 18 per cent slab, while accessories for carriages for specially-abled persons have been brought down to 5 per cent. However, there has been no change in GST rates for cement and auto parts keeping in mind the revenue propositions. The Finance Minister also stated that on movie tickets, those costing up to Rs 100 have been reduced from 18 to 12 per cent and those costing above Rs 100 from 28 to 18 per cent.

“There are 28 items left in the 28 per cent bracket if we include luxury and sin items. 13 items are from automobile parts and 1 is cement. Cement’s revenue is 13000 crore and automobile parts revenue is Rs 20,000 crore. If they are brought down from 28 per cent to 18 per cent implications are of Rs 33,000 crore,” Jaitley said while addressing reporters here.

The Council also came on a conclusion that services supplied by the banks to Jan-Dhan account holders will be exempted from GST. “The Law Fitment Committee will take a view on GST on real estate in the next meeting. There is a consensus that something needs to be done on this,” Jaitley added. The newly decided rates will be effective from January 1, 2019.

The Council has also approved proposal to form a 7-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.

Here’s a complete lowdown on what has become cheaper now:

1. Monitors and Televisions up to 32” screen size, digital cameras and video camera recorders, power banks of lithium-ion batteries, video game consoles and other sports equipment that come under HS code 9504, used pneumatic rubber tyres, and pulleys, transmission shafts and cranks, gear boxes have been moved from 28 per cent to 18 per cent GST slab.

2. Cinema Tickets above Rs.100 will also attract 18% GST now, opposed to 28 per cent earlier. Similarly, movie tickets up to Rs 100 will be levied 12 per cent GST than per cent earlier.

3. Parts and accessories used for the carriage of disabled persons like wheelchairs have been moved to 5 per cent GST slab from the top 28 per cent GST previously. Also, walking sticks will now attract 5 per cent GST as compared to 12 per cent earlier.

4. Cork roughly squared or debagged, articles of natural cork, as well as agglomerated cork, has been moved to 12 per cent GST from 18 per cent GST slab. On the other hand, natural cork will attract 5 per cent GST than 12 per cent earlier.

5. Another item to be moved to 12 per cent from 18 per cent GST slab is Third-party Insurance premium of goods carrying vehicles.

6. Marble Rubble will now attract 5 per cent GST than 18 per cent earlier; while fly ash blocks will also be levied 5 per cent GST than 12 per cent earlier.

7. Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container, as well as provisionally preserved will be exempted from GST as compared to 5 per cent GST slab earlier.

8. Music books have also been exempted from GST, that earlier attracted 12 per cent GST rate.

9. Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) will be exempted from GST on the bank’s services.

10. Lastly, air travel on non-scheduled/charter operations for religious pilgrimage facilitated by the Government of India under bilateral arrangements will be levied 50% GST with ITC of input services.