Highlights: GST Council cuts rates on 23 items; movie tickets, TVs to become cheaper

The 31st Goods and Service Tax (GST) council meeting began on Saturday in the national capital. The agenda for the meeting has not been made official yet. However. topics such as simplified returns, completely online refunds process are likely to be discussed in the meeting.“Market will closely track GST Council meet due Saturday, which is expected announce reduction of tax slabs for several items,” told Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas to news agency PTI.A Twitter war between the BJP and Congress erupted on Friday after Prime Minister Modi on Tuesday indicated that the 28 per cent slab of GST will soon only be restricted to a few select commodities, such as luxury items.Below are the highlights:

4:40 pm IST

Proposal to form Group of Ministers to study revenue trend approved

The GST Council meeting approved proposal to form a 7-member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the states.

The study would include the underlying reasons for deviation from the revenue collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.

4:36 pm IST

New GST rates to be effective from Jan 1: Jaitley

The new GST rates will be effective from 1st January, 2019. New GST return filing system to come into effect from July 1 next year: Jaitley

4:31 pm IST

GST on real estate to be reviewed in the next meeting: Jaitley

“The Law Fitment Committee will take a view on GST on real estate in the next meeting. There is a consensus that something needs to be done on this,” said the Union finance minister.

4:30 pm IST

Jan-Dhan account holders will be exempted from GST

“The services supplied by the banks to Jan-Dhan account holders will be exempted from GST,” announced Arun Jaitley.

4:25 pm IST

8 items left in the 28% bracket luxury & sin items are included: Jaitley

“There are 28 items left in the 28% bracket if we include luxury and sin items. 13 items are from automobile parts and 1 is cement. Cement’s revenue is ₹13,000 crore & automobile parts revenue is ₹20,000 crore. If they are brought down from 28% to 18% implications are of ₹33,000 crore,” announced Jaitley.

4:17 pm IST

Business class ticket in 12%, economy class ticket in 5% GST Slab

“Economy class air ticket will be under 5% and business class ticket will be under 12% GST slab,” announced Arun Jaitley.

4:16 pm IST

Cinema tickets upto ₹100 brought down from 28% slab

“Cinema tickets upto ₹100 will be brought down from 28% slab to 18% slab and above ₹100 has been brought down to 18% from 28%,” announced Jaitley.

4:06 pm IST

7 items brought down from 28% slab: Arun Jaitley

“Television sets, video games and powerbanks among 7 items which will be brought down from 28% slab,” announced finance minister Arun Jaitley.

Monitors and Television screens, Tyres, Power banks of Lithium-ion batteries have brought down from 28% to 18% slab. Accessories for carriages for specially abled persons have been brought down to 5%.

3:51 pm IST

‘TV, computers come down from 28% GST slab,’ says Uttarakhand finance minister

“22 goods have come down from 28%. Goods like TV, auto parts, computers etc included. Only the luxury & sins goods items remain in the 28% slab. GST on real estate will be discussed in the next GST Council meeting,” said Uttarakhand finance minister Prakash Pant.

3:34 pm IST

Cameras, dish washers and cement likely to get cheaper: Reports

The Goods and Survives Tax (GST) Council meeting is underway in the capital, which is expected to please the middle class as the decision is likely to bring down prices of white goods such as cameras, dish washers and cement, one of the key inputs for housing construction.

The recent statement of Prime Minister Narendra Modi has raised hopes of the middle class, a key constituency that no government can afford to alienate, especially when the General Election is months away. On Tuesday, Modi had indicated that his government would bring down tax rates of several goods and services to provide relief to the common man. He had hinted that his government was making efforts to bring down 99% items in the top tax slab of 28% to 18% or less.

3:01 pm IST

33 items moved from 18% GST slab

“33 items have come down from 18% to 12% & 5% as they are common man’s consumption goods,” sais Puducherry CM V Narayanasamy

1:55 pm IST

GST Council meet: Which items to be retained in 28% slab

The items that are likely to be retained in the 28 per cent slab include aerated drinks, cigarette, bidi, tobacco products, pan masala, smoking pipes, automobiles, aircrafts, yachts, revolvers and pistols, gambling lottery.

1:38 pm IST

Council likely to slash tax rates on automobile tyres to 18% from 28%: Reports

According to reports, the Council is likely to slash tax rates on automobile tyres to 18% from 28%. “A 28 per cent tax on automobile tyre impacts common man because ultimately he has to shell out the tax. The overall focus on December 22 Council meet will be to lessen the GST burden on common man,” an official told PTI.

Another item under discussion could be cement. “Cement is an area where huge instances of evasion was taking place. If tax rates come down more people will buy it from the formal channel and would also boost housing sector as well,” the official added.

12:57 pm IST

Possible lowering of GST rates caused by healthy receipts

The lowering of GST rates has been made possible by healthy receipts. The average monthly GST collection in 2017-18 was ₹89,885 crore, which rose to ₹97,040 crore in the current financial year, giving a headroom to absorb the revenue losses due to a proposed lowering of GST rates. In general, a lowering of rates is usually offset by higher volumes

12:27 pm IST

Govt might propose lowering of GST on a majority of items currently in the highest slab of 28% to 18%

The government will also propose lowering the goods and services tax (GST) on a majority of items currently in the highest slab of 28% to 18%, as announced by the Prime Minister on Tuesday, to boost consumer sentiment ahead of general elections.

12:14 pm IST

‘Want to make GST as smooth as possible for the enterprises,’ said PM Modi on Tuesday

The Prime Minister said the effort will be to ensure that 99 per cent of all items, including almost all items used by the common man, would be kept at a GST slab of 18 per cent or less.

“We are of the opinion of making GST as smooth as possible for the enterprises,” he said.

“In earlier days, the GST was framed according to the existing VAT or excise tax structures exercised in those respective states. (With) the discussions held from time to time, the tax system is getting improved,” Modi said.

12:03 pm IST

‘Working to bring 99% things in sub-18% GST slab,’ said PM Modi on Tuesday

Indicating that further simplification of the Goods and Services Tax is on the anvil, Prime Minister Narendra Modi said his government wants to ensure that ‘99 per cent things’ attract sub-18 per cent GST slab.

“Today, the GST system has been established to a large extent and we are working towards a position where 99 per cent things will attract the sub-18 per cent GST slab,” Modi said.

Modi indicated that the 28 per cent slab of GST would only be restricted to a few select items, such as luxury goods.

11:51 am IST

P Chidambaram termed Centre’s eight tax rates under GST regime “stupid idea”

Senior Congress leader P Chidambaram on Friday termed the BJP government’s eight tax rates under the Goods and Services Tax (GST) regime “stupid idea” saying “filing GST returns has been a nightmare”.

“The stupid idea was the BJP’s idea of having eight rates when GST was first implemented in July 2017,” the former finance minister tweeted.

Read: ‘A stupid idea’: Congress leader P Chidambaram on BJP govt’s eight tax rates under GST regime

11:22 am IST

GST Council meeting underway under chairmanship of Arun Jaitley

The 31st GST Council meeting is underway at Vigyan Bhavan under the chairmanship of finance minister Arun Jaitley.

The agenda for the meeting has not been made official yet. However. topics such as simplified returns, completely online refunds process are likely to be discussed in the meeting.

Delhi: 31st GST Council meeting underway at Vigyan Bhavan under the chairmanship of Finance Minister Arun Jaitley pic.twitter.com/j7T2sbffmF

— ANI (@ANI) December 22, 2018

11:18 am IST

Twitter war erupted on Friday between BJP, Congress over GST single rate slab

A twitter war started between Congress and BJP after Prime Minister Modi on Tuesday indicated that the 28 per cent slab of GST will soon only be restricted to a few select commodities, such as luxury items.

Following the remarks by Prime Minister, Congress President Rahul Gandhi on Thursday tweeted, “The Congress Party has finally jolted Narendra Ji from his deep slumber on Gabbar Singh Tax. Though still drowsy, he now wants to implement what he had earlier called the Congress Party’s, “Grand Stupid Thought”. Better late than never Narendra Ji!”

This was followed by Finance Minister Arun Jaitley taking a dig at UPA’s ‘legacy of higher indirect tax on most items’, and terming Congress President’s idea of the single slab as ‘stupid’.

Former finance minister and Congress leader P Chidambaram on Friday joined Congress President Rahul Gandhi in endorsing the idea of having a single rate in the Goods and Services Tax (GST), while criticising the BJP’s initial idea of having 8 rates as ‘stupid’.

11:02 am IST

Markets to closely track GST Council meet

Market to closely track GST Council meet due Saturday, which is expected announce reduction of tax slabs for several items.

10:56 am IST

‘GST damaged India’s economy,’ said P Chidambaram on Friday

Claiming that demonetisation and a “flawed” Goods and Services Tax (GST) had damaged India’s economy, the former Union Finance Minister said every citizen knew that the twin measures had impacted the country, destroyed jobs and small and medium enterprises.

10:45 pm IST

GST Council meeting begins under chairmanship of Arun Jaitley

The 31st GST Council meeting has begun at Vigyan Bhavan under the chairmanship of Finance Minister Arun Jaitley.

Delhi: 31st GST Council meeting begins at Vigyan Bhavan under the chairmanship of Finance Minister Arun Jaitley pic.twitter.com/NEoRbw1CXB

— ANI (@ANI) December 22, 2018