The Goods and Services Tax (GST) Council, on the 22nd of December, held its 31st meeting, in New Delhi.
Arun Jaitley, the Union Finance Minister, in the presence of the chief ministers and finance ministers of several states, led the 31st GST meeting. There were several arguments and discussions over the GST reduction for several items.
Highlighting the impact of the GST reduction on the revenue, Arun Jaitley said, “The GST rate reduction will have an overall impact on revenue of Rs 5,500 crore.”
The final decision about slashing the GST was made by Arun Jaitley, who reduced the GST from 28 % to 18 %, 12 % and 5 % respectively for some goods. A total of 6 items out of the existing 34 items were removed from the 28 % GST bracket. Three items were removed from the 18 % GST category and shifted to the 12 % category, while 1 item was moved from the 18 % bracket to the 5 % bracket. The GST on some products was changed from 12 % to 0 %.
Considering the daily need commodities which are already under the 0 % category, the Central Government also reduced the GST on some luxury goods and sin goods to 18 %, 12 % and 5 %. The highest GST slab is 28 %.
Movie tickets, carriages for disabled person, luxury products (air conditioners, dishwashers, TVs, tyres, monitors and projectors) and sin goods are some of the products which witnessed a reduction in the GST imposed on them.
Items such as tobacco, cigarettes, alcohol, soft drinks, automobiles, revolvers and pistols will remain under the 28 % bracket.
Apart from giving the common man relief through the reductions, the Central Government also extended the due date for filing the annual GST return and GST audit from the 31st of March, 2019 to the 30th of June, 2019.
The new GST rates will be in effect from the 1st of January, 2019 onward. The next GST meeting will be held in January 2019.