31st GST Council Meet Underway. (Source: BloombergQuint)

GST Council Cuts Rates On 32-Inch TVs, Video Games, Movie Tickets

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GST Rate On Special Flights For Pilgrims Lowered: Arun Jaitley

GST Council decided to cut rates on various items like 32-inch television sets, power banks and lithium ion batteries among others things at the 31st GST Council meeting in New Delhi.

Here are the key highlights of Finance Minister Arun Jaitley’s press conference after concluding GST Council meeting:

  • Rate reduction to come into effect from Jan 1
  • Total revenue impact on reduction of rates is Rs 5,500 crore for full financial year.
  • Brought down taxes of all building material items except cement.
  • GST on 17 items has been reduced today, says Revenue Secretary.
  • New return filing system will be started on a trial basis from April 1, to be implemented mandatorily by July 1, says Revenue Secretary AB Pandey.
  • Services supplied by banks to basic savings bank account and Jan Dhan accounts will be exempt from GST.
  • A composition scheme will be framed for small service suppliers.
  • Threshold will be decided in the next meeting after consultation with law and fitment committee.
  • Revenue implication for reduction in cinema tickets is Rs 900 crore.
  • Tax on cinema tickets of up to Rs 100 has been brought down to 12 percent.
  • For tickets above Rs 100, GST has been reduced to 18 percent.
  • Some of the issues on taxation on residential properties will be discussed in next meet in January.
  • GST rate on special flights for pilgrims lowered for economy at 5 percent and business class at 12 percent.
  • Monitors and screen up to 32 inches, gear boxes, retreated tyres, power banks of lithium ion batteries, video games and other sports related items have been reduced from 28 percent to 18 percent.
  • Except 13 auto parts and cement, rates on all items have been reduced.
  • Council discussed fitment committee recommendations on rate rationalisation
  • States were compensated Rs 48,000 crore for the losses incurred due to GST.
  • It is estimated that this year Rs 60,000 crore will be the compensation given to states.
  • A Group of Ministers will be created, and it will take expert opinion from NIPFP as some states are not showing improvement in revenues.
  • 34 items that are luxury or sin goods are out of our process of rate rationalisation.

GST Council Discussed Lowering Tax On 7 Items: Amit Mitra

  • No discussion on GST rate on cement, automobiles, air conditioner, dishwashers, molasses.
  • GST council discussed lowering of GST on 7 items.
  • Fitment committee recommended reduction of GST on 22 items, of which 7 are taxed at 28 percent.
  • Rates have been reduced on 22 items, of which 7 are from the 28 percent slab.
  • A group of seven Ministers will be constituted to look into revenue loss to states, structural problems of GST.

Source: West Bengal Finance Minister Amit Mitra

GST Rate On Cement, Auto Parts Left Unchanged: Thomas Isaac

  • GST rate on cement and auto parts left unchanged.
  • Cement and auto parts contribute Rs 24,000 crore in revenue.
  • Quarter of total revenue comes from 28 percent bracket.
  • Not practical to abolish 28 percent bracket altogether.
  • Total revenue loss from changes will be around Rs 6,000 crore.
  • Proposal on real estate sector was postponed

Source: Kerala Finance Minister Thomas Isaac

22 Items Removed From 28% Tax Bracket: Uttarakhand Finance Minister

  • About 22 items have been removed from 28 percent.
  • About Rs 5,000 crore will be the financial implication annually.
  • Rates on vehicle parts, TV, cement reduced from 28 percent slab.

Source: Uttarakhand Finance Minister Prakash Pant

GST On Tyres, VCRs, Lithium Ion Batteries Reduced To 18%

  • Rate on lithium ion battery, VCR and tyres reduced to 18 percent from 28 percent.

Source: Tamil Nadu Finance Minister Jayakumar