Tax rates on 22 items were decreased by the Federal indirect tax body, the Goods and Services Tax (GST) Council. Out of these 22 items 7 items belongs to the highest slab of 28%. Taxes on things with huge revenue entailments for the treasury, like cement plus automobile component parts, still stay in the 28% bracket. <\/p>\n\n\n\n
The 6 items that have been moved from\n28% to 18% are pulleys plus transmission shafts utilized in farming, monitors as\nwell as TVs up to screen dimension of 32 inches, power banks, digital cameras, retreaded\ntyres, video camera recorders, and video game consoles. Spare parts of\ncarriages for physically challenged people, which was previously taxed at 28%, now\nis reduced to 5%.<\/p>\n\n\n\n
GST on film tickets which costs up to Rs.100\nwas decreased to 12% from 18% thus tickets more than Rs.100 will now be charged\n18% GST against the previous 28%. Banks services to basic savings accounts as\nwell as the Pradhan Mantri Jan-Dhan Yojana (PMJDY) were also relieved from GST.<\/p>\n\n\n\n
The Council will be reviewing the 12%\ntax that is at on under-construction flats falling within the class of work\ncontracts. Sale of finished flats will not attract GST because it is only a\ntransfer of property. This has been put into effect because the 12% GST has\nbeen an encumbrance for home purchasers. <\/p>\n\n\n\n
Further decreasing the\nnumber of items under the highest GST rate may as well encourage demand. For\nexample automobiles in addition to a 28% GST rate, the class also have a compensation cess, relying on the size plus\nsegment. A reduction in rates will decrease the prices and perhaps urge consumers\nto relax their wallet strings.<\/p>\n\n\n\n
Apart from other determinations, the Council resolved to relieve frozen plus temporarily preserved veggies from GST. In addition the tax rate on 3rd<\/sup> party insurance premium of goods-conveying vehicles has been decreased from 18% to 12%.<\/p>\n\n\n\n The filing of returns according to the\nnew GST system will be implemented from July 1, 2019. The Council also accorded\nto arrange a Centralized Advance Ruling Authority.<\/p>\n\n\n\n The decrease in the rates of the GST was\nimposed well before the national polls earlier this year. There has been strong\npolitical argument between the Prime Minister Narendra Modi-led NDA government as\nwell as the opposition Congress party for the past few days over the reformed tax\nimplementation.<\/p>\n\n\n\n