GST Council reduces GST Rates of 23 goods and services
Why in News?
- The Goods and Services Tax (GST) Council on December 22, 2018 slashed GST Rates for 23 commonly used goods and services. The reduced rates will come into effect from January 1, 2019.
- The GST rate on movie tickets, costing up to Rs 100, was cut to 12 percent from 18 percent, while tickets over 100 rupees will attract 18 percent tax against 28 percent. Monitors and TV screens up to 32-inches and power banks will attract 18 percent GST, as against 28 percent earlier.
- With this rate rationalisation, only 28 goods are left in the highest 28 percent tax bracket. The rate rationalisation was a part of the government’s attempt to streamline GST and make it more people-friendly.
GST slash rates:
- From 28% to 18%:
- Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483
- Monitors and TVs of upto 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.
- From 28% to 5%
- Parts and accessories for the carriages for disabled persons
- GST rate reduction on other goods
- From 18% to 12%:
- Cork roughly squared or debagged
- Articles of natural cork
- Agglomerated cork
- 18% to 5%
- 12% to 5%
- Natural cork
- Walking Stick
- Fly ash Blocks
- 12% to Nil
- 5% to Nil
- Vegetables, (uncooked or cooked by steaming or boilinginwater), 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.
- Exemptions:
- 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)