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IANS
New Delhi
Computer monitors, TV screens, video games, lithium-ion power banks, retreaded tyres, wheelchairs and cinema tickets are among products and services set to get cheaper with their removal from the GST regimes’s highest 28 percent tax bracket by the GST Council on Saturday, with the industry lauding the latest reductions as a boost for demand.
Among the items consumed by the common man, only cement continues to remain, along with luxury and ‘sin’ goods, in the 28 percent bracket as the Goods and Services Tax (GST) Council brought down the rates of all other categories of goods in a further rationalisation of rates that left only 28 items in the highest tax slab.
A total of 17 items and six services have been reduced which will result in a revenue impact of Rs5,500 crore for the full fiscal, Finance Minister Arun Jaitley said, briefing reporters here after the 31st meeting of the Council chaired by him.
“There are 28 items left in the 28 percent bracket if we include ‘luxury and sin items’, and items used by economically well-off sections of the society, only one item of common man’s usage - cement - remains in the bracket,” Jaitley said.
Second-hand tyres, video games, monitors and television screens up to 32 inches, and lithium battery power banks will now attract 18 percent GST.
The GST on wheelchair accessories has been brought down to 5 percent from the existing 28, which will also allow the payment of input tax credit that is not possible with zero tax,” Jaitley said.
Airconditioners and dishwashers have been left untouched at the highest rate because these are not items of common use in India, he said.
Nearly 1,250 goods and services have been categorised under the four tax slabs of 5, 12, 18 and 28 percent under the GST regime.
The GST Council postponed a decision to the next meeting in January on five issues - taxation of residential properties, extending the composition scheme for small businesses to small service providers, the tax rate on lotteries, raising the exemption threshold for MSMEs and on the tax to provide relief in natural calamities.
New Delhi
Computer monitors, TV screens, video games, lithium-ion power banks, retreaded tyres, wheelchairs and cinema tickets are among products and services set to get cheaper with their removal from the GST regimes’s highest 28 percent tax bracket by the GST Council on Saturday, with the industry lauding the latest reductions as a boost for demand.
Among the items consumed by the common man, only cement continues to remain, along with luxury and ‘sin’ goods, in the 28 percent bracket as the Goods and Services Tax (GST) Council brought down the rates of all other categories of goods in a further rationalisation of rates that left only 28 items in the highest tax slab.
A total of 17 items and six services have been reduced which will result in a revenue impact of Rs5,500 crore for the full fiscal, Finance Minister Arun Jaitley said, briefing reporters here after the 31st meeting of the Council chaired by him.
“There are 28 items left in the 28 percent bracket if we include ‘luxury and sin items’, and items used by economically well-off sections of the society, only one item of common man’s usage - cement - remains in the bracket,” Jaitley said.
Second-hand tyres, video games, monitors and television screens up to 32 inches, and lithium battery power banks will now attract 18 percent GST.
The GST on wheelchair accessories has been brought down to 5 percent from the existing 28, which will also allow the payment of input tax credit that is not possible with zero tax,” Jaitley said.
Airconditioners and dishwashers have been left untouched at the highest rate because these are not items of common use in India, he said.
Nearly 1,250 goods and services have been categorised under the four tax slabs of 5, 12, 18 and 28 percent under the GST regime.
The GST Council postponed a decision to the next meeting in January on five issues - taxation of residential properties, extending the composition scheme for small businesses to small service providers, the tax rate on lotteries, raising the exemption threshold for MSMEs and on the tax to provide relief in natural calamities.
