Press Release
The GST Council, in its 31st meeting held on 22 December 2018 in New Delhi, approved a comprehensive set of GST rate reductions and exemptions across a wide range of goods and services with the objective of reducing the tax burden on consumers and promoting demand in key sectors. The Council decided to lower the GST rate from 28 percent to 18 percent on several commonly used items such as monitors and televisions up to 32 inches, digital cameras, video game consoles, power banks, re-treaded tyres, and certain industrial components, while parts and accessories for carriages meant for persons with disabilities were reduced from 28 percent to 5 percent. Additional rate rationalisation was undertaken for goods taxed at 18 percent and 12 percent, including cork products, fly ash blocks, walking sticks, marble rubble, and natural cork, with some items such as music books and specified frozen or preserved vegetables being fully exempted from GST. To address disputes in the renewable energy sector, the Council prescribed a clear valuation mechanism for solar power and other renewable energy projects by deeming 70 percent of the contract value as goods taxable at 5 percent and the remaining 30 percent as services taxable at the applicable rate. On the services side, the Council approved significant relief measures, including reduction in GST on cinema tickets, lowering GST on third-party insurance premiums for goods-carrying vehicles, exemption of banking services provided to Jan Dhan account holders, and alignment of GST rates on chartered air travel for government-facilitated pilgrimages with economy class fares. These decisions were aimed at rationalising the GST structure, addressing industry concerns, and passing on tangible benefits to consumers through reduced prices, with legal effect to be given through subsequent notifications and circulars.
Other Press Releases
Major GST Rate Rationalisation and Citizen-Centric Reforms Approved by the 56th GST Council
The 56th meeting of the GST Council, held in New Delhi under the chairpersonship...
Read MoreGST Council Finalises Tax Framework for Online Gaming, Casinos, and Horse Racing
The 51st meeting of the GST Council, held virtually under the chairpersonship of...
Read MoreGovernment Clarifies Extended Time Limits for Key GST Compliances under Finance Act, 2022
The Ministry of Finance issued a clarification regarding the revised time limits...
Read More