Lately, India’s Finance minister Arun Jaitley announced the reduction in GST Rates which will affect common 23 products and services. The slashed rates will come in to effect from January 1, 2019. With this dictum of the government, now only 28 goods are left those fall under the highest tax rate bracket of GST which is 28 percent. However, this reduction will help in a great way to streamline the GST and give some relief to people.
As per the Mr. Jaitely statement, the movie ticket above 100 rupees will liable to charge between 18 to 28 percent GST while below that comes under 18 to 12 percent only. However, most of the PVR tickets in urban areas are more than 100 rupees at all. Nevertheless, in countryside vicinity or areas where still traditional cinema theatres are active, this will help a lot.
Other major development was related to TVs and Monitors up to 32 inches, now, only attracts 18 percent of GST including power banks, earlier was 28%. Rest of the GST rates reduction on different items given below:
GST rate reduction from 28 percent to 18 percent
- Pulleys, transmission shafts, and cranks, gearboxes, falling under HS Code 8483
- Monitors and TVs of up to screen size of 32 inches
- Re-treated or Used pneumatic tires of rubber
- Power banks of lithium-ion batteries. Lithium-ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium-ion battery.
- Digital cameras and video camera recorders.
- Video game consoles and other games and sports requisites falling under HS code 950
In the context to GST reduction on Monitors and TVs, Mr. Avneet Singh Marwah, Director and CEO, Super Plastronics Pvt. Ltd., a Kodak Brand licensee stated:
This is a great move by the government as this will also help increase the penetration of LED televisions in the country. Even though we were expecting an 18% GST drop in 40-inch televisions but nevertheless this move will certainly improve the sentiments in the market as rightly said by our finance minister Mr. Arun Jaitley ‘32inches is not a luxury product this will be a mass product for the country’. In future also we expect a reduction in GST for other sizes as well. Kodak will be the first television brand to pass on to customers from 1st of January.
duction in GST Rates/Exemptions on Services
- GST rate n cinema tickets above RS 100 shall be reduced from 28% to 18% and on cinema tickets up to Rs 100 from 18% to 12%.
- GST rate on third-party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%.
- Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
- Ait travel of pilgrims by non-scheduled /Charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements, shall attract the same rate of GST as applicable to similar flights in economy class (i.e. 5%).
Other GST Rate Reductions
|28% to 5%||18% to 12%||18% to 5%||12% to 5%||12% to Nil||5% to Nil|
|Parts and accessories for carriages of disabled persons||Cork roughly debagged||Marble rubble||Natural cork|
|Music Books||Vegetables (uncooked or cooked by steaming or boiling), frozen, branded and out in a unit container.|
|Articles of natural cork||Walking Stick|| |
Vegetables provisionally preserved (for example by sulfur dioxide gas, in brine, in sulfur water or in other preservative solutions), but unsuitable in that state for quick consumption.
|Agglomerated cork||Fly ash Blocks|