In a move aimed at appealing to the common man, the central government on Saturday slashed rates on 23 commonly used goods and services. Addressing a presser after chairing the 31st GST council meet, Finance Minister Arun Jaitley said only luxury items will remain in the top 28 percent slab and that rate cuts will have an impact on revenue of Rs 5500 crore.
Six items have been taken out from the highest GST bracket of 28 percent, thereby leaving only 28 items in the slab. Now, the 28 percent slab is restricted to only luxury and sin goods, apart from auto parts and cement. The new GST rates will be effective from 1st January 2019.
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).
Here is a list of items that will become cheaper after GST reduction.
Items slashed to 18 percent GST slab
Movie tickets over Rs 100.
Monitors and television screens
Tyres and power banks of Lithium-ion batteries
Items slashed to 12 percent GST slab
Movie tickets up to Rs 100
Third party insurance
Items reduced to 5 per cent
Accessories for carriages for specially abled persons
Solar power plants and other renewable energy items
The services supplied by the banks to Jan-Dhan account holders will be exempted from GST.
Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992
Services provided by GTA to Government departments/local authorities which have taken registration only for the purpose of deducting tax under Section 51.
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.
Jaitley also said the tax rate on real estates will be discussed in the next meeting. “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,” he said.