GST Council Meet: GST rates of 33 items slashed from 18% to 12% & 5%; a new year perk from Modi government

On a new year eve for, the Prime Minister Narendra Modi-led BJP government greeted consumer with a new year perk. On Saturday, the Goods and Services Tax (GST) Council has slashed GST rates of 33 items from 18 per cent to 12 per cent and 5 per cent.

Puducherry Chief Minister V Narayanasamy on GST Council meet in Delhi said, “33 items have come down from 18% to 12% & 5% as they are common to man’s consumption goods.” The Goods and Services Tax (GST) Council meeting was held in Delhi on Saturday.

“The original demand by Congress that all goods should come down to 18% & below except luxury items has been agreed by the Government. Except for 34 items, all other will come down to 18% & below,” Narayanasamy added.

Union Finance Minister Arun Jaitley said, "28% slab rate is only applicable on 34 items now. These are luxury items."

The Centre earlier this week had said that 99% of items can be moved under 18 per cent GST. The GST is the government's biggest tax reform, sets rates from 28 per cent to 5 per cent on most items, replacing an array of central and state duties.

Here are list of item on which GST rates are slashed off:

Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%.

Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%. There is no GST cut on cement and auto parts.

There are 28 items left in the 28% bracket if we include luxury & sin items. 13 items are from automobile parts & 1 is cement. Cement’s revenue is 13000 crore & automobile parts revenue is 20000 crore. If they are brought down from 28% to 18% implications are of 33000 crore.