The GST Council meeting, that was scheduled to be held on December 22 bears good news. Puducherry Chief Minister, V Narayanasamy, said that Goods and Services Tax (GST) rate has been reduced on 33 commodities.
He says the items which came under 18 percent GST slab have now been brought down to the 12 percent GST slab, while some items over which 12 percent GST was levied have reduced to the 5 percent GST slab.
Narayanasamy said, “The real demand of Congress was that all other products except luxury goods should be brought at the rate of 18 percent and the Government also agreed. All except the 34 products have been kept in the GST rate of 18 or less. ”
The 31st GST Council meeting is currently underway in Vigyan Bhawan in New Delhi.
Earlier this week, National Institution for Transforming India (NITI) Aayog Vice-Chairman Rajiv Kumar said on Wednesday that the average rate of Goods and Services Tax (GST) will soon be 15 percent.
The government has expressed its will to reduce the tax rate on most of the items used by a common man. Prime Minister Narendra Modi, addressing the Republic Summit on Tuesday, said that his government is working towards achieving the goal of bringing 99 percent things used by a common man under the sub-18 percent GST slab.
“Today, the GST system has been established to a large extent and we are working towards a position where 99 percent things will attract the sub-18 percent GST slab,” Modi said.
New GST 28 percent slab-
28 Items in total including (mainly luxury and sin items):
- 13 items of automobile parts
- 8 cement industry related items
- Air Conditioners
6 items removed including:
- Power Banks of lithium ion batteries
- Video games
- Small-sport related items
- Carriage accessories for disabled
- Cinema tickets valuing more than ₹100 moved to 18 percent
New GST 18 percent slab-
- Cinema tickets valuing more than ₹100
New GST 12 percent slab
- Special pilgrim flights of business class
- Cinema tickets valuing less than ₹100 (reduced from 18 percent)
- Third party insurance
New GST 5 percent slab
- Special pilgrim flights of economy class
Items exempted from GST
- IIM Courses
- Bank charges (savings bank, Jan Dhan Yojana)