Six items removed from 28% GST slab

Six items removed from 28% GST slab

The decision comes days after Prime Minister Narendra Modi said that his government wanted to ensure that "99 per cent items attract sub-18 per cent GST slab".

Modi is seeking a second term in next five months amid voter frustration over the abrupt implementation of a nationwide goods and services tax (GST) in July 2017 that has resulted in job losses for thousands of workers in small businesses. Tickets above Rs. 100 were under the 28% slab.

The goods on which GST has been lowered to 18 per cent from 28 per cent at present include pulleys, transmission shafts and cranks, gear boxes, retreated or used tyres, power banks of lithium ion batteries, digital cameras, video camera recorders and video game consoles.

Airconditioners and dishwashers have been left untouched at the highest rate because these are not items of common use in India, he said. Most of these items were charged, along with cascading effect, at 31 per cent. "If they are brought down from 28 percent to 18 percent implications are of 33000 crore". So therefore we followed a more realistic pragmatic and a prudent policy that as the revenues move up and affordability increases we gradually bring it down. The original demand by Congress that all goods should come down to 18% and below except luxury items has been agreed by the Government.

- Jaitley said that the 31st GST Council meeting has approved proposal to form a 7-Member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the states.




Addressing reporters, after the meet at Vigyan Bhawan, Finance Minister Arun Jaitley said,"28% slab rate is only applicable on 34 items now". Tickets priced over Rs 100 will now attract 18% tax instead of the earlier 28%, Jaitley said, adding that the move will have a revenue implication of about Rs 900 crore. The contribution of cement is about Rs 13,000 crore in a financial year. Monitors and TV screens up to 32-inches and power banks will attract 18 percent GST, as against 28 per cent earlier.

Sharing other important decisions taken by the GST Council today, FM Jaitley said, "There is no GST cut on cement and auto parts". "Except 34 items all other will come down to 18% & below".

Commenting on the development, advisory multinational Deloitte said the selection of items for rate reductions "appear to be influenced by the desire to minimise revenue dips".

"The GST on wheelchair accessories has been brought down to 5 per cent from the existing 28, which will also allow the payment of input tax credit that is not possible with zero tax", Jaitley said.

V Narayanasamy, Puducherry Chief Minister, said, " 33 items have come down from 18 per cent to 12 per cent and 5 per cent as they are common man's consumption goods.

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