News Regulatory

GST on TVs, movie tickets slashed; effective from 01 January 2019

gst rates 2019 january movie tickets television

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%.

Related: TRAI Tariff Order: DTH prices to go up from December 29

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
Power banks 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
Agglomerated cork 18 12
Marble rubble 18 5
Walking sticks 12 5
Fly ash blocks 12 5
Natural cork 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
Music Books 12 Nil
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:

  1. 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%.
  2.  The incentives paid by RBI to Banks under “Currency Distribution and Exchange Scheme” (CDES) are taxable.
  3. The services provided by Council/ Board of Primary/ Secondary/ Higher Secondary Education for conduct of examination to its students are exempt.
  4. The services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act, 1966.
  5. 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.
  6. 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

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Krishna KP is the founder of Preview Tech. He is a marketing geek and helps webmasters to monetize their web properties. When not online he is involved in debates with his friends over the issues that concern the world!

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