GST council slashes rates of 7 items from 28%; movie tickets, TV screens likely to get cheaper

The GST Council on Saturday held a meeting in New Delhi and decided to slash rates for items from 28 per cent.

Union Finance Minister Arun Jaitley held a press conference after the meeting wherein he informed that the GST council has not increased any rates, rather have brought down several.

"Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%," the finance minister informed.

Jaitley added that the rates were revised keeping the Fitment committee's recommendation in mind and that the exercise is aimed at directing revenue inflow.

"States with higher consumption have improved. North East states have shown a better implementation of GST," Jaitley noted.

In a relief to the common man, the GST Council cut rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks.

The annual revenue implication of the rate cuts would be Rs 5,500 crore, Finance Minister Arun Jaitley said.

The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.

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

Puducherry Chief Minister V Narayanasamy also interacted with reporters and informed that that 33 items have come down from 18% to 12% & 5% as they are common man’s consumption goods.

"The original demand by Congress that all goods should come down to 18% and below except luxury items has been agreed by the Government. Except for 34 items, all other will come down to 18% & below," Narayanasamy stated.