New Delhi: The government has tried to reassure the common people by reducing the Goods and Services Tax (GST) on nearly 23 items. Only about half to one percent items are remaining in the list of goods taxed at the highest rate of 28% as compared to the original list. This decision will bring down the prices of 32″ TV, power banks, Cinema tickets etc. This cut in GST will cost the exchequer ₹55 billion. The new rates will be applicable from the 1st of January 2019.
Central Finance Minister Arun Jaitley made this announcement at a press conference in New Delhi. Informing about the decisions taken in the GST council, Finance Minister Jaitley said that 23 products and services have been removed from the highest tax bracket of 28%. These include, along with the movie tickets, items like 32” TV, Power bank, Digital Camera and Video Camera. Movie tickets above ₹100 taxed at 28% will now be taxed at 18%, and the tax on tickets below ₹100 will be reduced from 18% to 12%.
Jaitley claimed that this has a positive effect on the film industry. The Filmmakers association will have expressed satisfaction over the decision. Jaitley also informed that Luxury items and sin items like liquor and cigarettes are the only items remaining in the 28% bracket. Jaitley further said that only half to one percent items are now remaining in the highest tax bracket of 28% as compared to the original list.
Meanwhile, the Finance Minister informed that these changes would cost the exchequer ₹55 billion. The central government implemented GST on 1st July 2017. There were 226 products and services in the 28% tax bracket at that time. Finance Minister Jaitley said that 198 items out of these had been moved to the lower tax brackets in the last one and a half year. The decision regarding the construction sector will be taken in the next GST Council meeting. There is a growing demand that the rates of GST for this sector need to be reconsidered. The Finance Minister clarified that the matter would be taken for consideration in the next GST Council meeting.