GST, the government’s biggest tax reform, sets rates from 28 per cent to 5 per cent on most items, replacing an array of central and state duties.
To simplify the indirect tax regime, the government moved most goods to a reduced GST rate.
The Goods and Services Tax (GST) Council removed seven items from the 28 per cent tax bracket, the government said in a statement on Saturday. Six items – such as pulleys gear boxes, monitors and TVs (up to 32 inches), digital cameras and video game consoles – moved from 28 per cent to 18 per cent while one item – parts and accessories for carriages for people with disabilities – moved from 28 per cent to 5 per cent, the release added. 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. The new GST rates will be effective from January 1, 2019, Finance Ministry Arun Jaitley said while briefing reporters after the 31st GST Council meeting.
The GST Council has also removed four items from 18 per cent slab. Three items – such as articles of natural cork – moved from 18 per cent to 12 per cent while one – marble rubble – moved from 18 per cent to 5 per cent. Total four items have been moved from 12 per cent slab while three items have been moved to 5 per cent such as natural cork and walking stick
GST rate reduction will have an overall impact on revenue of Rs. 5500 crore, said Mr Jaitley.
Due date for GST annual return and audit report has also been extended till June 30, 2019.
GST, the government’s biggest tax reform, sets rates from 28 per cent to 5 per cent on most items, replacing an array of central and state duties.
