TVs, movie tickets to be cheaper as GST Council cuts rates on 23 items

In a major relief to the common people, the Goods and Services Tax (GST) Council on Saturday, December 22, brought certain revisions in GST by cutting rates on 23 commonly used goods and services, including TV screens, movie tickets and power banks.

The Council has rationalised the 28% slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.

Briefing reporters after the 31st GST Council meeting here, Jaitley said rate rationalisation is an ongoing process."28% bracket is gradually moving to sunset... The next target will be rate rationalisation in cement as and when affordability improves," Finance Minister Arun Jaitley said, adding that the annual revenue implication of the rate cuts would be ₹ 5,500 crore.

Now, the 28% slab is restricted to only luxury and sin goods, apart from auto parts and cement -- tax rates on which could not be cut due to the high revenue implication, according to Jaitley.

GST on movie tickets costing up to ₹100 was cut to 12% from 18%, while tickets over ₹ 100 will attract 18% tax, against 28% earlier. This will have a revenue implication of ₹900 crore. Monitors and TV screens up to 32-inches and power banks will attract 18% GST, as against 28% earlier.

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

The GST Council also decided to form a seven-member Group of Ministers (GoM) to study anomalies in tax collection in some of the states which showed wide deviation from what was expected.

"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," Jaitley said after the meeting.

The study would include the underlying reasons for deviation from revenue collection targets vis-a-vis original assumptions discussed during the design of the GST system, its implementation and related structural issues, he said.

Jaitley said the GOM would be assisted by a committee of experts from the Central and state governments and the National Institute of Public Finance and Planning (NIPFP), who would study and share the findings with the GoM.

The GoM in turn would give its recommendation to the GST Council, he said. The members of the GoM and the committee of experts would be announced in due course of time.

The GST Council also gave its approval to creation of a Centralised Appellate Authority for Advance Ruling (AAAR) by amending the GST Act. According to the Ministry of Finance, the GST Council in its 31st meeting gave in-principle approval to the creation of AAAR to deal with the cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue.

(With agency inputs)