Govt cuts GST rate on 23 items: Here's what will get cheaper

[Vikatakavi02]

Govt cuts GST rate on 23 items: Here's what will get cheaper

NEW DELHI: In a Christmas bonanza to the common man, the GST Council on Saturday reduced tax rates on 23 goods and services, including movie tickets, TV/monitor screens and power banks, and exempted frozen and preserved vegetables from the levy.
The reduced rates are likely to come into effect from January 1, 2019, finance minister Arun Jaitley told reporters after the 31st meeting of Goods and Services Tax (GST) Council in the national capital.
Of the 23 goods and services on which rates have been slashed, tax rate on seven items in the 28 per cent slab has been brought down. With this, only 28 goods are left in the highest 28 per cent tax bracket.

Here are the items that will get cheaper:

GST slashed from 28% to 18%

Pulleys, transmission shafts and cranks, gear boxes etc., falling 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%. This will bring parity in GST rate of power bank and lithium-ion battery.
Digital cameras and video camera recorders
Video game consoles and other games and sports requisites falling under HS code 9504.

28% to 5%
Parts and accessories for the carriages for disabled persons.


GST rate reduction on services

GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets up to Rs 100 from 18% to 12%.
GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%
Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at medical establishments, educational institutions, rehabilitation centers established by Central Government / State Government or Union Territories or entity registered under section 12AA of the Income-tax Act shall be exempted.
Services provided by GTA to Government departments/local authorities which have taken registration only for the purpose of deducting tax under Section 51 shall be excluded from payment of tax under RCM and the same shall be exempted.
Exemption on services provided by Central or State Government or Union Territory Government to their undertakings or PSUs by way of guaranteeing loans taken by them from financial institutions is being extended to guaranteeing of such loans taken from banks.
Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).

GST rate reduction on other goods

18% to 12%
Cork roughly squared or debagged
Articles of natural cork
Agglomerated cork

18% to 5%
Marble rubble

12% to 5%
Natural cork
Walking Stick
Fly ash Blocks

12% to Nil
Music Books

5% to Nil
Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container
Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.

Miscellaneous
Exemption from GST on supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
Exemption from GST on proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
Exemption from IGST/Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
Rate of 5%/18% to be applied based on transaction value of footwear
Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)