New Delhi: In a relief to the common man, monitors, TVs (up to 32 inches) and movie tickets will cost less as the GST Council on Saturday removed seven items from the 28% tax bracket, thereby leaving only 28 items in the highest tax slab.
While six items, such as digital cameras, video game consoles, monitors and TVs up to 32 inches, were shifted from the tax slab of 28% to 18%, one – parts and accessories for carriages for people with disabilities – was moved from 28% to 5%, the government said in a statement.
GST on movie tickets costing up to Rs 100 was cut to 12% from 18%, while tickets over Rs 100 will attract 18% tax, against 28% earlier. This will have a revenue implication of Rs 900 crore.
The new tax rates will come into effect from January 1, 2019.
The GST Council also removed four items from 18% slab. Out of these four, three – articles of natural cork, and corks roughly squared or de-bagged – were moved to the 18% slab, while one – marble rubble – was shifted to 5%.
In total, the government cut rates on 23 commonly used goods and services.
The annual revenue implication of the rate cuts would be Rs 5,500 crore, Finance Minister Arun Jaitley said.
Briefing reporters after the 31st GST Council meeting here, Jaitley said rate rationalisation is an ongoing process. “28% bracket is gradually moving to sunset… The next target will be rate rationalisation in cement as and when affordability improves,” he said.
Now, the 28% slab is restricted to only luxury and sin goods, apart from auto parts and cement — tax rates on which could not be cut due to the high revenue implication.