GST|Top headlines on GST (Goods and services Tax) in India|Latest GST Changes|GST council meeting

After the 31st meeting of goods and services tax (GST) in India , latest GST changes the union finance minister Arun Jaitley said that monitors and TV screens , tyres,power banks (of lithium-ion batteries) have brought down from 28% to 18% slab, while accessories for carriages for specially abled persons have been brought down to 5% (GST rate on cement. No changes). Arun jaitley further said it was decided not to cut GST cut on cement and auto parts, in view of the revenue implications and there was no discussion on GST rate for cement in the council Team.

Among other cuts, the finance minister announced were on movie tickets, where those costing up to Rs100 have been brought down from 18 to 12% and those priced above Rs 100 from 28 to 18%. Let we discuss the changes on 31st meeting of goods and services tax Council 22 December 2018,New Delhi.

●Top Headlines on GST in India

●Latest GST Changes

●GST Council meeting

The new tax rates will come into effect from january 1, 2019

1.GST on vegetables-

Frozen branded vegetables (uncooked or cooked by steaming or boiling in water) , frozen branded and put in a unit container.Vegetables provisionally preserved ( for example- sulphur dioxide gas , in brine, in sulphur water or in other preservative solutions) but unsuitable in that state for immediate consumption to the attract zero GST , said on official statement and exempted frozen and preserved vegetables from the levy.

2.GST rate on auto parts-

The GST on certain auto parts has been reduced from 28% to 18%. This items include pulleys, transmission shafts and cranks, gear boxes etc. It may be mentioned that currently there are 34 goods in the highest tax bracket of 28%. The list include commonly used items like new pneumatic tyre of rubber ( Automobile tyre) , digital camera, air conditioners, dishwashing machine, set top box for TV, monitors and projectors as well on contructions item like cement. Retreaded or used pneumatic tyres of rubber to attract 18%. GST , not 28% as earlier.

3. GST rate on movie tickets-

Movie tickets are set to become cheaper reports say that only 18% GST will charged on movie tickets priced over Rs 100 and 12% on tickets priced below Rs 100. GST rate on cinema tickets above Rs 100 shall be reduced from 28 to 15% and on cinema tickets upto Rs 100 from 18% to 12% said on official statement (Twitter). GST on movie tickets costing up to Rs 100 was cut to 12% from 18%. With the latest round of cuts, effective january 1, the government has reduced rates on nearly 360 items since GST was introduced almost 18 month ago.

4.GST rate on cement-

No change.GST council reduces tax on TV, movie tickets cement remain unchanged.

5.GST rate on computer monitor-

Monitor and TV screen upto 32 inches and power bank will attract 18%. GST, as against 28% earlier. New Delhi, in a christmas bonaza to the common man , the GST council on saturday reduced tax rates on 23 goods and services, including movie tickets, TV/monitor screens and powerbank and exempted frozen and preserved vegetables from the levy.

Cinema tickets, third party motor insurance, smaller TV sets, power banks, flights for Haj and Mansarovar yatra and branded frozen vegetables will get cheaper with the GST Council slashing rates on 23 items on saturday. There are indications that rates will be pared for more items-including under contruction flats-when the panel comprising union and state finance ministers meets in january.

There are indications that in the next meeting a simpler set of rules will be put in place for small and medium scale industries and small services providers

6.GST on religious Air Travel-

GST on religious air travel has been reduced from 18% to 12% and 5%. Air travel of pilgrim by non scheduled/ charter operations, for religious pilgrimage facilitated by the government of India under bilateral arrangements shall attracts the same rate of GST as applicable to similar flights in Economy classes( i.e 5% with ITC of input services) said on official statement.

7.GST rates on power bank of lithium-ion batteries and reduction overall impact-

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 said on official statement.GST rate on accessories for carriages for specially abled person.GST rate on accessories for carriages for specially abled person have been brought down to 5%. Finance minister Arun jaitley said that GST rate reduction will have on overall impact on revenue of Rs 5500 crore.Important date new GST rates to be effective from 1st january 2019

8.GST rate on third party motor insurance and music books-

GST rate on third party motor insurance has been brought down from 28% to 18%. GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12% said on official statement. GST rate on music books us now 5% to Nil. The GST council in its 31st meeting held at New Delhi decided to refer the following issue to committees/GOM indicated against them

Extending the composition scheme to small service providers. The rate of tax and threshold limit to be proposed-law committee and fitment committee

9.GST on Jan Dhan account services-

The services supplied by the banks to Jan Dhan account holders will be exempted from GST services supplied by banks to Basic saving bank deposit ( BSBD) account holders under Pradhan Mantri Jan Dhan Yojana ( PMJDY) shall be exempted said on official statement.

10.GST next council meeting-

The next GST council meeting to take place in January.

11.Tax rate on lotteries, Digital cameras and video camera recorders-

Committee of states taxation of residential property in real estate sector-law committee and fitment committee.Threshold limit of exemption under GST regima-GOM on MSMEs. GST council in its next meeting would takes view on the above issues in its next meeting (Twitter).GST rate on digital cameras and video camera recorders have been brought down from 28 to 18%.GST rate on video game consoles, other games , sports items.

12.GST rate on natural cork, walking stick, fly ash blocks and marble Rubble-

GST rate on natural cork, walking stick , fly ash block and marble rubble to attract 5% GST now. The reduced sales are likely to come into effects from January 1, 2019, finance minister Arun jaitley told reporters after the 31st meeting of goods and services tax . Council is the national capital of the 23 goods and services on which rates have been slashed tax rate on seven items in the 28% slab has been brought down. With this only 28 goods are left in the highest 28% tax bracket.

13.GST rate on solar power generating plant, renewable energy plants-

GST rate of 5% rate has been prescribed on renewable energy devices and parts for their manufacture ( biogas plant/solar power based devices, solar power generating system etc other goods and services used in these plants attracts applicable GST. Certain dispute have arisen regarding GST rates where specified goids attracting 5%.

14.Guwahati, giving a sigh of relief to the tax payers, the goods and services tax council on saturday, brought down prices of goods and services such as TV sets, cinema tickets and video games from the top 28% rate, which now only be levied at only 28 items like air conditioners, cement and sin items such as pan masala, aerated drinks and tabacco products

15. Prime minister statement on tuesday that the tax rates of several goods and services would be brought down to provide relief to the common man has raised hopes of the middle class, a key constituency that no government can afford to alienate, especially when the General election is months away.

GST have five tax slabs of 0%, 8, 12,18 and 28% with daily essential items attracting nil tax rates and luxury, sin and somewhile goods at the highest tax slab

Noteworthy that in the first eight months ( April, Nov.) of the current fiscal , the government has mopped up over Rs7.76 lakh crore from GST. The 2018- 19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthy target of Rs 1.12 lakh crore

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