GST Council Meeting Highlights: Movie Tickets, Video Games To Be Cheaper, Says Arun Jaitley

Earlier this week, PM Modi had said the government is aiming to bring 99% of items below the 18 per cent GST slab and warned of stringent action against defaulters of bank loan and fugitives.
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