Yesterday the meeting of the GST Council is held under the chairmanship of Finance Minister Arun Jaitley. The common man was expecting to hear some relief news. Not because five states lost the elections, now the preparations are 2019. But because a few days ago, Prime Minister Narendra Modi had said that the government wants 99% of the items to come within 18% of GST or lower tax.
It was expected that it could be stamped in the Council meeting and a lot of products can be excluded from the 28% tax slab. That’s exactly what happened. The government has excluded 6 items from 28 percent tax slabs. Apart from this, 18 per cent tax on 33 products of general consumption has also been reduced.
Talking to the media after the council’s meeting, Finance Minister Arun Jaitley said that only 28 items have been left within the 28 per cent tax scope. These new rates will be effective from 1st January, 2019. Explain that the Council has been continuously reducing the tax slab of 28 per cent for the last few years. In July 2017, when GST was implemented. Then 226 items came under the purview of tax 28 percent.
The main decisions taken in the GST Council meeting are as follows:
- The new system of returning GST return will be implemented from January 1, 2019.
- 6 items were excluded from 28 percent tax scope.
- Now only 28 products have remained within 28 percent of GST.
- 33 items have been excluded from 18 percent tax.
- The AC and Dishwasher will still be 28 per cent GST.
- Movie tickets upto Rs 100 will now be taxed 12%. So far it was 18 per cent tax.
- Movie tickets for more than Rs 100, which was 28 per cent tax, it will now be 18 per cent.
- There will be 18 percent tax on 28 items in some video games and Spartans.
- The services offered by the banks to public fund accounts have been kept free of GST.
- Computer accessories and power banks have been removed from the scope of 28 percent to 18 percent.
- Religious air travel of economy class will mean 5 percent on Haj and Kailash Mansarovar and 12 percent GST on business class.
- On Tires and Normal Size TVs, GST has grown from 28 to 18 percent.
- GST has been cut down to 5 percent on the devices used by the Devyang people.
- GST has not been reduced on cement and auto parts.
- Cigarettes and copper products will not be excluded from the GST scope of 28%. There is no hope of tax deduction on aircraft and luxury trains.
- The next meeting of the GST Council will be held in January 2019.
Where on one side Puducherry Chief Minister V. Narayanasamy told Congress’s demand to reduce the scope of 28 per cent tax, on the other hand, officials from Congress ruled Rajasthan, Madhya Pradesh and Chhattisgarh opposed it in the meeting. Officials who came from these states told the council that there is a plan to get political advantage behind reducing the slab rate. In the last three days, Congress had returned to power defeating BJP. While Narayanasamy told the media that it was Congress’s demand that the prices of GST should be reduced to 18 percent or less below all other products except luxury products. The government has also given its consent.