Looks like The Goods and Services Tax (GST) committee has sent around a wave of happiness and added another reason for us to celebrate! GST has been totally knocked off for some necessary products, while the rate has been reduced for some household items.
A total of 88 items have been affected by the new GST rates; which reduced the rates on some items of daily use which were ridiculously overpriced previously, and some items which include some necessary items like sanitary pads have become absolutely free of GST.
The new GST return filing will be effective from July 1, 2019, marking the 2 years of commencement of GST.
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Six items removed from the topmost slab of GST
What many people have quoted as ‘belated wisdom’, the Federal Indirect Tax Body has come up with this people-pleasing decision on Saturday, 22 December, 2018.
Six items from the highest tax bracket have been removed, leaving only 28 items in the said bracket. This would result in change in the annual revenue of Rs. 5,500/- crores.
Finance minister, Arun Jaitley says, “This is a major step towards rationalizing the 28% tax slab which has been narrowed to only a few commodities in the past thirteen months.”
In spite of PM Narendra Modi’s promise that the topmost slab of GST be reserved for luxury or sin items, but automobile parts and cement continues to be in the topmost slab of the 28% GST, apparently because the Council felt that “this is too steep at this moment.”
Movies, Gadgets to Become Cheaper
In the recent past, GST on movie tickets costing up to Rs. 100 was reduced from 18% to 12%, now GST on tickets priced above Rs. 100 will now be priced at 18% GST rather than the previous 28%. The GST on electronic gadgets will also be reduced from 28% to 18%.
Also, there will be no GST on properties which have completion certificates.
Here are the details of the changes in GST:
Items Exempted from GST
Sanitary pads, Rakhis (made without precious material like gold, silver etc.), Marble, stone or wood deities, Raw materials used in brooms, Fortified milk, Saal leaves, Coir pith compost, Circulation and commemorative coins.
GST reduced from 28% to 18%
Washing Machines, Refrigerators, Freezers, TVs up to 68cm, Video Games, Vacuum Cleaners, Trailers and Semi-trailers, Mixer Grinders, Shavers and Hair Dryers, Water Coolers, Storage Water Heaters, Lithium ION Batteries, Electric Iron, Paint.
GST reduced from 18% to 12%
Handbags (pouches, purses, jewelry bags, etc.), artware of cork, stone, iron, aluminium, glass, ganjifa card, Hand operated Rubber rollers, Bamboo flooring, Brass Kerosene Pressure Stove, etc.
GST slashed to 5%
Ethanol, Toran, Footwear under Rs. 1000, handloom dori, Knitted cap/topi having retail sale value not exceeding Rs 1000, handmade items like lace, braids and ornamental trimming in the piece, carpets and other textile floor coverings, Handwoven tapestries.
Also Read: GST Completes One Year – 5 Successes, 4 Failures & The Future Of Taxation In India!
GST Tax Rate Slabs Demystified – From 0% To 28% In 4 Tax Slabs