The GST Council, which met for their 31st meeting of Goods and Services Tax (GST) on Saturday, decided to reduced tax rates on 23 goods and services that are likely to come into effect from January 1 2019. The Finance Minister Arun Jaitley informed reporters post-meeting that the items included in the tax reduction consist of movie tickets, TV and monitor screens and power banks etc.
The GST council working on the desire of PM Narendra Modi to bring the number of items taxed at 28% rate down to the minimum announced that, out of 23 goods and services, seven items in the 28 per cent slab has been brought down.
The goods that have been brought down from 28% tax slab to 18% slab includes pulleys, transmission shafts and cranks, gearboxes, retreaded or used tyres, power banks of lithium-ion batteries, digital cameras, video camera recorders and video game consoles. With the new tax cut, only 28 goods are left in the highest 28 per cent tax bracket.
The Finance Minister while talking to reporters said that “28 per cent bracket is already moving towards a sunset, except the luxury and sin items, 3 items which are used by the upper-income group and only 1 item of common use remains.” Jaitley also added, “The next target will be rate rationalisation in cement as and when affordability improves.”