Goods and Services Tax (GST): New slab rates
New Delhi: In a major relief to common people today, Goods and Services Tax (GST) on Saturday slashed rates of 33 items from 18% to 12% and 5%. The GST Council is headed by Union Finance Minister Mr. Arun Jaitley. The meeting was held at Vigyan Bhavan. It was attended by Finance Ministers of all states.
The new GST rates will be effective from January 1, 2019.
The Goods & Services Tax (GST) Council removed seven items from the 28 percent tax bracket, the government said in a statement on Saturday. Six items – such as pulleys gearboxes, monitors and TVs (up to 32 inches), digital cameras and video game consoles – moved from 28 percent to 18 percent while one item – parts and accessories for carriages for people with disabilities – moved from 28 percent to 5 percent, the release added.
The GST Council has also removed four items from 18 percent slab. Three items – such as articles of natural cork – moved from 18 percent to 12 percent while one – marble rubble – moved from 18 percent to 5 percent. Total four items have been moved from 12 percent slab while three items have been moved to 5 percent such as natural cork and walking stick
The 28 percent slab is restricted to only luxury and sin goods.
However, GST on real estate will be discussed in the next GST Council meeting, the release further said.
GST rate reduction will have an overall impact on revenue of Rs. 5500 crore, said Mr. Jaitley.
The due date for GST annual return and audit report has also been extended till June 30, 2019.