The GST Council met on Saturday, and announced a cut in tax rates for 22 goods and services. Seven goods have been taken out of the highest tax bracket of 28 percent. These include monitors and television screens up to 32 inches, re-treaded tyres, power banks of lithium ion batteries.
The Council chose not to lower rates on specific high-revenue items in the 28 percent bracket. Cement, which brings the government Rs 13,000 crore, in revenue, has been left at the peak rate. The tax rate on 13 auto part items, that fetch around Rs 20,000 crore in revenue annually, has also been left unchanged at 28 percent.
Full List Of Goods Where Tax Rate Lowered
Reduced to 18 Percent from 28 Percent
Reduced To 5 Percent From 28 Percent
Reduced To 12 Percent From 18
Reduced To 5 Percent From 18 Percent
Reduced To 5 Percent From 12 Percent
Reduced To Nil From 12 Percent
Reduced To Nil From 5 Percent
Rate Cuts On Services
- Cinema tickets above Rs 100: reduced to 18 percent from 28 percent.
- Cinema tickets up to Rs 100: reduced to 12 percent from 18 percent.
- Third-party insurance premium of goods carrying vehicles: reduced to 12 percent from 18 percent.
- Services supplied by banks for Basic Saving Bank Deposit account holders under the Jan Dhan Yojana to be exempt from GST.
- Air travel of pilgrims in special flights, for religious pilgrimage facilitated by the Government of India shall attract the same rate of GST as applicable to similar flights in economy class.
- Bio-gas plants, solar power based devices and solar power generating systems will attract a 5 percent GST rate. Other goods or services used in these plants will attract the applicable rate.
- To resolve recent disputes regarding goods and services offered in the construction of solar power plants, the GST Council recommended that “in all such cases, the 70 percent of the gross value shall be deemed as the value of supply of said goods attracting 5 percent rate and the remaining portion (30 percent) of the aggregate value of such EPC contract shall be deemed as the value of supply of taxable service attracting standard GST rate.”
(This article was originally published on BloombergQuint)
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