MeraNews Network, New Delhi: The 31st Goods and Services Tax (GST) Council meeting took place in Vigyan Bhavan in New Delhi on Saturday. The government cut GST rates on several items and even moved six items from the highest tax bracket to other lower tax brackets. Now cost items like television sets (upto 32 inches), movie tickets, power banks will cost lesser.
The goods that were previously under the 28 percent bracket and have now brought down include pulleys, transmission cranks and shafts, gear boxes, monitors and TVs (upto 32 inches), power banks of lithium ion batteries, digital and video cameras and video game consoles.
Cinema tickets costing up to Rs 100, which was previously under 18 percent bracket, have now been brought down to 12 percent GST slab. Tickets costing above Rs 100 have been brought down to 18 percent, which was previously under the 28 percent slab.
GST rate on special flights for pilgrims has been lowered for economy at 5 percent and business class at 12 percent. Tax on solar power plants and other renewable energy items, accessories for carriages for specially-abled persons have been brought down to 5 percent.
Speaking to journalists after the meeting, Arun Jaitley said that the government has removed six items from the highest tax bracket (28 percent) and now only 28 items remain in the categories which are luxury items like cement, auto parts, AC and dishwasher. Jaitley further informed that the Law Fitment Committee will take a view on GST on real estate in the next meeting.
The government brought down rates of 23 goods and services, bringing a revenue impact of Rs 5,500 crores. The Council also agreed to set up a seven Member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the states.
The study would include the underlying reasons for deviation from the revenue collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues. The council, headed by the finance minister Arun Jaitley, is the highest decision making body of the indirect tax system, brought into implementation in July 2017.