GST on 23 items, services cut

Tribune News Service

New Delhi, December 22

With a view to providing relief to the common man, the Goods and Service Tax (GST) Council today announced slashing of rates on 23 items of use in either category, including television, digital and video cameras, power banks, movie tickets, chartered pilgrimage flights, basic bank accounts, carriages for physically challenged, and walking sticks, among others.

The announcement made by Finance Minister Arun Jaitley came after the 31st meeting of the council here. The reduction will result in annual revenue implication of Rs 5,500 crore. The new rates could come into force by the New Year, the minister said at a briefing.

Days after Prime Minister Narendra Modi declared that a majority of items would be in the slab of 18 per cent and below, the Finance Minister said after rationalising tax, 28 per cent slab existed only for 28 items. “The (highest) bracket is gradually moving to sunset...,” he said.

Taking a jibe at Congress leaders Rahul Gandhi and 

P Chidambaram for seeking to take credit for the move, he said: “They should take credit for the 31 per cent they imposed on the country.”

Jaitley said the highest tax slab now remained on luxury and sin goods, including air-conditioner and dishwasher. On 13 items/sub-items of auto parts and cement, the only item of use by common man, taxes could not be reduced due to high revenue implication. The council also set up a seven-member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some states.

Jaitley said while some states, especially in the North-East, had done well in achieving or reaching stiff revenue targets, states like Himachal Pradesh and Punjab were lagging behind. However, this was largely on account of the purchase tax component.

He also said among the reasons for targets not being achieved was excessive competition in telecom and airlines sectors.

The council also decided to grant one-time exemption from levy for delay in filing the annual assessment return and extended the last date from March 31, 2019, to June 30, 2019. The move is to encourage more people to join the system.

The council said the ledger process was being simplified and refund process streamlined. A new returns process will be set into motion on April 1, 2019, on a trial basis for three months and become mandatory by June next year.