The Goods and Services Tax (GST) Council in its meet today slashed rates of 23 items that include televisions and movie tickets. However, rates of items such as cement and auto parts were left unchanged.
Further, the Council also proposed to slash GST rates on six items from 28 percent to 18 percent. Items such as sporting equipment, lithium battery power banks, movie tickets, retreated Tyres, video games billiards and snooker will now be attracting 18 percent GST.
The Council has also proposed to drop the GST on Wheelchair accessories from 28 percent to 5 percent bracket.
The GST Council’s fitment committee has also recommended rate rationalisation and maintaining of revenue balance flows were considered during the meet, said Union Finance Minister Arun Jaitley.
“Cement rate was left unchanged at 28 percent during the 31st meeting of the GST Council as it has huge revenue implications. Cutting rates on cement and auto parts would cost the exchequer a Rs 13,000 crore and Rs 20,000 crore loss, respectively,” Jaitley said.
GST items on products such as automobiles, molasses and dishwashers were not changed.
Reduction of GST rates on solar power generating plants and renewable energy items were also recommended by the Council.
The move is initiated in alignment with Prime Minister Narendra Modi who promised to bring most of items under the 18 percent or lower 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,” said Prime Minister earlier.