GST Council slashes rates on 23 Goods and Services

The tax rates on 23 goods and services has been reduced by the GST Council on 22nd December 2018. These goods include movie tickets, TV and monitor screens, power banks and others. After this reduction, only 28 goods are left in the highest tax bracket of 28 percent and includes cement, sin goods (tobacco, alcohol), auto parts and luxury goods such as Air Conditioner and dishwasher. The new GST rates will be applicable from 1st of January 2019.
The renewable energy devices and their parts will be taxed at 5%. The GST on the accessories for carriages for specially-abled persons has been reduced to 5 per cent. No tax will be applied to the services provided by the banks to Jan-Dhan account holders. Also, Frozen and preserved vegetables will not be taxed at all.
The tax has been reduced to 12% from the previous rate of 18% for the cinema tickets costing up to 100 rupees and to 18% from 28% for tickets priced above Rs 100.  The rate of tax for Digital cameras, Power banks, 32 inches monitors and TV  up to 32 and video game consoles has also been reduced to 18%.
Constitution of a seven Member Group of Ministers has been proposed by the GST Council to study the revenue trend and to analyse the reasons for structural patterns influencing the revenue collection in some states.
The GST council is the primary decision-making body regarding the Goods and Services Tax (GST) that takes all the important decisions like setting the tax rate, tax exemption, tax laws, and tax deadlines etc.

Month: Current Affairs - December, 2018