Ahead of 2019 Lok Sabha elections, the Goods and Services Tax (GST) Council on Saturday gave a big bonanza to common people by slashing tax rates on as many as 33 items, including big screen colour TVs, movie tickets. The GST Council refrained from bringing cement and automobile parts under 18 per cent from the current 28 per cent slab. However, to rationalise the highest tax bracket, the GST Council headed by Finance Minister Arun Jaitley moved seven goods from 28 per cent to lower slabs. The move came just two days after Prime Minister Narendra Modi said that his government was planning to simply the indirect tax regime. The GST rate reduction will have an overall impact on revenue of Rs 5500 crore. Briefing reporters after the 31st GST Council meeting here, Jaitley said rate rationalisation is an ongoing process. "28 per cent bracket is gradually moving to sunset. The next target will be rate rationalisation in cement as and when affordability improves," Jaitley said. Now, the 28 per cent 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.
Below is the list of items on which the GST rates have been slashed
The new GST rates will be effective from January 1, 2019. New GST return filing system will come into effect from July 1, 2019.
(More items will be included soon. Please refresh the page for the latest version)