The government of India on Saturday decided to cut GST rate on several items including TVs (up to 32 inches), movie tickets and computers. GST on cinema tickets costing up to Rs 100 has been brought down to 12% from 18%, while tickets costing more than Rs 100 will now attract a GST of 18% from earlier 28%.

GST on third-party insurance premiums has also been reduced from 18% to 12%. Announcing the government's plan to rationalize the 28% slab, finance minister Arun Jaitley said that only 28 items now remain in the highest tax bracket.

"We have cut six more items from the 28% bracket, bringing the overall items in the category from 34 to 28," Jaitley said in his address to the media after the meeting. "Monitors and television screens, tyres, power banks of lithium-ion batteries have been brought down from 28% to 18% slab. Accessories for carriages for specially-abled persons have been brought down to 5%," Jaitley said.

Most of the products in the 28% slab are now luxury and sin goods, which are beyond the purview of rationalization, the finance minister said. Earlier, Uttarakhand finance minister Prakash Pant had announced that GST has been slashed on items like TV, auto parts and computers.

After attending the 31st Goods and Services Tax (GST) Council, Puducherry Chief Minister V Narayanaswamy said that 33 items have now moved from the 18 per cent slab  to 12 per cent and 5 per cent categories. "33 items have come down from 18 per cent to 12 per cent and 5 per cent as they are common man's consumption goods," told Narayanaswamy.

The 31st GST Council meeting was held today at Vigyan Bhavan in the national capital under the chairmanship of Jaitley. The GST Council, headed by Jaitley, is the highest decision-making body of the new indirect tax system that came into effect from the first of July last year.

(Featured image : Indian Express)