31st GST Council meeting: Cinema, TVs, Computers, Power Banks, Tyres will be cheaper from 1st Jan 2019

22 Dec
31st GST Council meeting: Cinema, TVs, Computers, Power Banks, Tyres will be cheaper from 1st Jan 2019

In a New Year bonanza to the common man, the GST Council slashed tax rates on 33 goods and services, including movie tickets, TV, Power Banks, monitor screens and tyres. Further, the frozen and preserved vegetables are exempted from the GST.

The reduced GST rates will come into effect from January 01, 2019.

GST Council slashed tax rates in total 23 items to 12% and 5% from 18% slab and six items have been brought down from the 28% tax slab to 18%.

The Goods and Service Tax Council in its 31st meeting held on Saturday, December 22, 2018 under the chairmanship of Finance Minister, Arun Jaitley at Vigyan Bhawan, Delhi took various important decision on rate rationalization, exemption issues and Input Tax Credit.

The state finance ministers also attended the GST council meeting held on December 22, 2018.

GST Council has has met 30 times prior to December 22, 2018 and took 918 decisions related to GST laws, Rates, GST Rules, Threshold limit etc. More than 96 percent decisions of GST Council have already been implemented.

Cinema prices slashed

GST on movie tickets comes down to 12% for movie tickets upto Rs 100 from 18 per cent, and comes down to 18% as against from 28% for tickets over Rs 100. This will have annual revenue implication of Rs 900 crore to the Government.

Relaxation of GST on TV, Computer Screens, Power Banks

GST council slashed the rate of GST to 18% from 28% on TVs, Monitors upto 32 inches and power banks. This will have annual revenue implication of Rs 1500 crore to the Government.

Formation of Group of Minister (GoM) to study revenue

GST council approved the formation of 7-member Group of Minister (GoM) to study revenue trends and analyse the reasons for structural patterns affecting the revenue collection in some of the states.

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

Extension of due date of Filing GST Annual Return

The GST council has extended the due date for furnishing the annual returns for the Financial Year 2017–18 to June 30, 2019, in Form GSTR-9, Form GSTR-9A and reconciliation statement in Form GSTR-9C. This came as a boon to the small scale traders who are demanding for an extension for quite a long.

GST Council is likely to provide huge relief to traders by lowering fine on late filing of GST returns, sources aware to the meeting said. Late filing fine for nil taxpayers and traders may be reduced to Rs 1000 and Rs 2000 per month respectively. As of now, late filers are liable to pay fine of Rs 10,000 a month.

Cement remains unchanged in 28%

GST on Cement remains in 28% tax bracket. The revenue comes from cement alone is Rs. 13,000 crore. According to finance minister Arun Jaitley, bring cement and automobile parts from 28% to 18% will have a revenue implication of Rs 33,000 crore to the Government.

The next target will be rate rationalisation in cement as and when affordability improves, Jaitley added.  

Fate of GST on Real Estate will be decided in the next meeting scheduled in January 2019.

The finance minister said services by the banks to Jan Dhan account holders will be exempted for paying any Goods and Services Tax.

Today's GST rate reduction will have an overall impact on revenue of Rs 5,500 crore, Jaitley added.