GST Council cuts rates on 33 items; GST for Wheelchair reduced from 28% to 5%
ONI Bureau: With an aim to simplify the indirect tax regime, the Goods & Services Tax (GST) Council on Saturday cut rates of 33 items from 18% to 12% and 5% respectively.
While, 7 items brought down to 18% from 28% slab, only 34 luxury items will remain in 28% slab.
• GST for Wheelchair reduced from 28% to 5%.
• GST for movie tickets above Rs 100 reduced from 28% to 18% & tickets below Rs 100 reduced from 18% to 12%.
• GST for Video game items, sports items, monitors and TV screens up to 32 inches lowered to 18%.
• Rate for re-treaded tyres lowered to 18%, Footwear 18% to 12%, Frozen veggies 5% to nil
• Air conditioners, dishwashers largely used by upper segment of society, left at 28%.
• GST rate on special flights for pilgrims lowered for economy at 5% and business class at 12%.
• It is estimated that this year Rs 60,000 crore will be given to states for the losses incurred due to GST.
• Late filing fine for nil tax payers and traders may be reduced to Rs 1000 and Rs 2000 / month respectively
There are 28 items left in the 28% bracket if we include luxury & sin items. 13 items are from automobile parts & 1 is cement. Cement’s revenue is 13000 crore & automobile parts revenue is 20000 crore. If they are brought down from 28% to 18% implications are of 33000 crore.
Addressing the media after the 31st GST Council meeting, Finace Minister Arun Jaitley announced about these developments.
New GST rates will be effective from January 1, 2019.