Finance Minister Arun Jaitley is holding the meeting with finance ministers from states in attendance.
The Goods and Services Tax (GST) Council on Saturday cut rates of 33 items from 18 per cent to 12 per cent and 5 per cent, Puducherry Chief Minister V Narayanasamy said, following a meeting chaired by Finance Minister Arun Jaitley. The meeting at Vigyan Bhawan was attended by finance ministers all the states.
Earlier this week, Prime Minister Narendra Modi had said the government is aiming to bring 99 per cent of items below the 18 per cent GST slab and warned of stringent action against defaulters of bank loan and fugitives.
Here are the highlights on the GST Council meeting:
The Goods and Services Tax (GST) Council on Saturday decided to form a seven-member Group of Ministers (GoM) to study anomalies in tax collection in some of the states which showed wide deviation from what was expected, according to news agency Press Trust of India.
"The Council has approved the proposal to form a seven-member GoM to study the revenue trend, including analysing reasons for structural patterns affecting revenue collection in some of the states," Finance Minister Arun Jaitley said after the meeting, according to news agency PTI.
The study would include the underlying reasons for deviation from revenue collection targets vis-a-vis original assumptions discussed during the design of the GST system, its implementation and related structural issues, he said.
Reduction in GST rates/exemptions on services:
- GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto 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.
- Air 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% with ITC of input services).
GST rate reduction on goods which were attracting GST rate of 28% :
From 28% to 18% GST slab rate-
- Pulleys, transmission shafts and cranks, gear boxes etc, falling under HS Code 8483
- Monitors and TVs of upto screen size of 32 inches
- Re-treaded or used pneumatic tyres 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 9504
GST Council Meet: Karan Johar tweets on reducing GST on movie tickets
GST Council Meet: Services supplied by banks to basic savings accounts, PMJDY exempt from GST, says Arun Jaitley
Services supplied by banks to basic savings accounts, PMJDY exempt from GST, says Arun Jaitley
GST Council agrees to set up a Centralised Advance Ruling Authority, says Arun Jaitley
GST Council has agreed to set up Centralized Advance Ruling Authority, said Arun Jaitley.
GST Council Meet: "GST Council slashes tax rate on 7 goods in the 28% slab," says Arun Jaitley
"GST Council slashes tax rate on 7 goods in the 28% slab," says Arun Jaitley.
GST Council Meet: "Pilgrims travelling by economy, business will pay the same tax," says Arun Jaitley
Arun Jaitley said that pilgrims travelling by economy and business will pay the same tax. There won't be premium tax anymore for pilgrims, he said.
GST Council Meet: "Cinema tickets upto Rs 100 which had 18% GST rate are now under 12%," says Arun Jaitley
Cinema tickets upto Rs 100 which were under 18% GST slab was brought down to the 12% slab. Tickets above Rs 100 were under the 28% slab. These tickets will now be under 18% slab.
GST Council Meet: Video games have been brought under 18% slab from 28%: Arun Jaitley
Video games have been brought down from the 28% slab to the 18% slab, says Arun Jaitley.
GST Council Meet: "34 items left under 28% slab rate," says Arun Jaitley
"34 items are left under 28% slab rate," says Arun Jaitley. "We have 28 out of 28 now," he said.
GST Council Meet: "Hundreds of commodities' GST rates have gone down," says Arun Jaitley
"Hundreds of commodities' GST rates have gone down," said Arun Jaitley.
GST Council Meet: Arun Jaitley says manufacturing and consuming states of Maharashtra, West Bengal "have shown improvement"
"Manufacturing and consuming states like Maharashtra and West Bengal have shown improvement," Arun Jaitley says. "Improvement in second year than first year," he said.
GST Council Meet: "We have a stiff target," says Arun Jaitley
"Compensation given last year for eight months was 48 per cent," said Arun Jaitley. "A state by state comparison was done," he said. "We have a stiff target," he said.
GST Council Meet: "This was the 31st meeting of the GST Council," says Arun Jaitley
This was the 31st meeting of the GST Council. There was an extensive agenda, said Arun Jaitley. Recommendations of the Fitment Committee were heard, he said. Expansive discussion took place on revenues, he added.
GST Council Meet: Finance minister Arun Jaitley is currently briefing the media after the GST Council meet
Arun Jaitley has begun addressing the media after the GST Council meeting.
"The original demand by Congress that all goods should come down to 18% & below except luxury items has been agreed by the Government. Except 34 items all other will come down to 18% & below," Puducherry Chief Minister V Narayanasamy said.
Kerala Finance Minister Thomas Issac on GST meeting- There are not much big proposals
- But there are proposals reducing the service tax
- Otherwise its routine clarifications
- A large number of appeals have come
- And GST council will be approving the clarification given CBC
- There Won't Be any Big Chances As It Happened 2 Months Ago
Earlier this week, Prime Minister Narendra Modi had said the government is aiming to bring 99 per cent of items below the 18 per cent GST slab and warned of stringent action against defaulters of bank loan and fugitives.
"Before GST, registered enterprises numbered 65 lakh, which has now increased by 55 lakh. Today, the GST system has been established to a large extent and we are working towards a position where 99 per cent items can be brought in the sub-18 per cent slab," said PM Modi.
The meeting is being chaired by Finance Minister Arun Jaitley with finance ministers from states in attendance.
The government is likely to announce major tax rate cuts in the 31st GST Council meeting.