In a new year gift to consumers, 31st GST Council meeting on Saturday slashed GST on various items – 33 items were moved from 18 percent tax slab to 12 percent and 5 percent while 6 items were moved from 28 percent slab to 18 percent bracket. While wheel chairs and related accessories will now be taxed at 5% down from 28%.
“The Council has approved the proposal to form a seven-member GoM to study the revenue trend, including analysing reasons for structural patterns affecting revenue collection in some of the states,” Finance Minister Arun Jaitley said after the meeting, as reported by news agency PTI.
Revised GST Rates Applicable from 01 January 2019
|Description of Goods||Old GST in %||New GST in %|
|Pulleys, transmission shafts and cranks, gear boxes etc||28||18|
|Video game consoles and other games and sports requisites||28||18|
|Digital & Video Camera recorders||28||18|
|Colour Television Sets & monitors up to “32 Inches”||28||18|
|Retreated & used pneumatic Rubber Tyres||28||18|
|Movie Tickets greater than Rs 100||28||18|
|Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India||28||18|
|Premium on Third party insurance on Vehicles||18||12|
|Movie Tickets less than or equal to Rs 100||18||12|
|Articles of Natural cork||18||12|
|Cork roughly squared or debugged||18||12|
|Fly ash blocks||12||5|
|Parts and accessories for the carriages for disabled persons||28||5|
|Parts for manufacturing renewable energy devices falling under chapter 84, 85 or 94 of Tariff||Nil||5|
|Vegetables cooked/uncooked via steamed, frozen or boiled (branded)||5||Nil|
|Vegetables provisionally preserved but unsuitable for immediate consumption||5||Nil|
GST Rates 2019 Congress Protests:
Notably, Congress which has been accusing the Centre for flawed GST implementation has opposed the proposal to move several items from the 28 percent GST slab to a lower tax slab. GST council comprises of union finance minister, union minister of state in charge of revenue or finance, and the minister in charge of finance or taxation or any other Minister nominated by each state. Congress which rules Punjab, Rajasthan, Madhya Pradesh, Chattisgarh, Karnataka (coalition), Puducherry is represented in the Council by the respective states.
GST Rates January 2019 Clarification:
- “Printing of pictures” falls under service code “998386: Photographic and videographic processing services” of the scheme of classification of services and attract GST @18% and not under “998912: Printing and reproduction services of recorded media, on a fee or contract basis” which attracts GST @12%.
- The incentives paid by RBI to Banks under “Currency Distribution and Exchange Scheme” (CDES) are taxable.
- The services provided by Council/ Board of Primary/ Secondary/ Higher Secondary Education for conduct of examination to its students are exempt.
- The services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act, 1966.
- GST is exempt on supply of food and drinks by an educational institution when provided by the institution itself to its students, faculty and staff and is leviable to GST of 5% when provided by any other person based on a contractual arrangement with such institutions.
- Banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent.
32nd GST Council is scheduled in January 2019. The GST Council would then consider rationalisation of tax rates on residential properties and raising the threshold limit for MSMEs from the current Rs 20 lakh.
Press release is here