GST

Latest update: What Change will this New Year bring for you?

In the article below, we would like to give you a brief idea about what changes you can expect from 1^st January 2019 in terms of GST rates on specific products which will come as a big relief to you as the ultimate consumers. In this article, we will discuss the Latest update on GST Rates.

But before moving ahead, let us have a brief idea what GST is.

What is the Goods and Service Tax?

Goods and Services Tax (GST) is an indirect tax which is levied in India on the supply of goods and services. GST is levied at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer.

When does it first become effective?

In India, GST came into effect from 1^st July 2017

What are the different tax slabs under GST?

Goods and services are divided into five tax slabs for the collection of the tax which are 0%, 5%, 12%, 18%, and 28%.

Who govern it?

The tax rates, rules, and regulations are governed by the GST Council which consists of the finance ministers of centre and all the states.

It is the governing body of GST having 33 members which are chaired by the Union Finance Minister.

What decisions were taken on 22^nd December 2018 by the GST Council?

• The GST Council in its 31^st meeting which was held at Delhi took a decision to reduce the rate of GST on 33 items from 18% to 12% and 5% as they are common to man’s consumption goods.
• Besides, seven items have been moved from 28 per cent slab to 18 per cent.
• 28 per cent slab is now restricted to only luxury and sin goods, apart from auto parts and cement such as air conditioners, cement, and sin items such as pan masala, aerated drinks, and tobacco products.
• The GST Council has extended the due date for filing annual GST returns and GST audit to June 30, 2019. This announcement came as a huge relief to small-scale traders who have been urging the government for an extension.

What Reduction or Exemptions on Services you can Expect from 1^st January 2018?

1. GST rate on cinema tickets above Rs 100 will be reduced from 28% to 18% and on cinema tickets up to Rs 100 from 18% to 12%.
2. GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%.
3. Services supplied by banks to Basic Saving Bank Deposit account holders under Pradhan Mantri Jan Dhan Yojana shall be exempted.
4. 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.

Update on GST Rates after 1^st January 2019 on Certain goods?

To give more clarity, we have classified all the goods on which GST rate have been reduced

The rate of these goods has been reduced from 28% to 18%

1. Pulleys, gearboxes, transmission shafts, and cranks, etc, falling under HS Code 8483
2. Monitors and TVs of screen size up to 32 inches
3. Re-treaded or used pneumatic types of rubber
4. Power banks of lithium-ion batteries
5. Digital cameras and video camera recorders
6. Video game consoles and other games and sports requisites falling under HS code 9504

The below is reduced from 28% to 5%

1. Parts and accessories for the carriages for disabled persons

The rate of these goods has been reduced from 18% to 12%

1. Cork roughly squared or debugged
2. Articles of natural cork
3. Agglomerated cork

The below good has been reduced from 18% to 5%

1. Marble rubble

The rate of these goods has been reduced from 12% to 5%

1. Natural Cork
2. Walking stick
3. Fly ash Blocks

The rate of these goods has been reduced from 12% to Nil

1. Music Books

The rate of these goods has been reduced from 5% to Nil

1. Vegetables, (uncooked or cooked by steaming or boiling in water), frozen, branded which is put in a unit container
2. Vegetables provincially preserved (for e.g.: by sulfur dioxide gas, in brine, in sulfur water or in other preservative solutions), but unsuitable in that state for immediate consumption

The above rates would be applicable from 1^st January 2019.

The government is likely to bring out additional benefits in the next GST council meeting in January which will offer more relief to the common man.

For more information regarding the update on GST Rates, please free to contact Enterslice.