New GST Rates To Make These Items Get Cheaper
In a new year gift to the common man, the government has notified reduction in GST (Goods and Services Tax) on 23 goods and services, including movie tickets, TV and monitor screen.
The consumers will pay less for these items of common consumption as the incidence of GST rates on them will come down from Tuesday. Goods and Services Tax (GST) Council had a meeting on December 22 regarding the new GST rates on 23 items of mass consumption.
The new rates that are applicable from today are expected to bring down prices of consumer goods such as televisions, tyres, monitors, movie tickets and much more. Nearly 1,250 goods and services have been categorized under the four tax slabs of 5, 12, 18 and 28 per cent under the GST regime.
The main reason for this tax rationalisation before 2019 general elections is due to Prime Minister Narendra Modi recently promise where he states that he will bring 99% the goods under the 18% or lower GST slab.
The number of items that will get cheaper with this revision are namely Computer monitors, TV screens, frozen vegetables, Video games, Lithium-ion power banks, Retreaded Tyres, Second-hand Tyres, Wheelchair accessories, Cinema tickets, Music books, Digital cameras, Video camera recorders, third party insurance on goods-carrying motor vehicles, Marble rubble, Natural Cork, Cork roughly squared or debagged, Articles of natural cork, Agglomerated cork, Walking sticks as well as Fly ash blocks.
A total of 17 items and six services have been reduced which will result in a revenue impact of Rs 5,500 crore for the full fiscal. Music books and vegetables (uncooked or cooked by steaming or boiling in water), frozen, branded and put in a unit container and vegetables provisionally preserved but unsuitable in that state for immediate consumption have been exempted from GST.
Services supplied by banks to basic savings bank deposit account holders under the Jan Dhan Yojana will not attract the GST.