New Delhi, Dec 22: The Goods and Services Tax (GST) Council on Saturday held its 31st meeting at Vigyan Bhawan in the national capital.
After the meeting, Union Finance Minister Arun Jaitley addressed the media about the key decision.
“There are 28 items left in the 28% bracket if we include luxury & sin items. 13 items are from automobile parts & 1 is cement. Cement’s revenue is 13000 crore & automobile parts revenue is 20000 crore. If they are brought down from 28% to 18% implications are of 33000 crore”, he said.
The Minister announced that Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%.
There is no GST cut on cement and auto parts.
The Law Fitment Committee will take a view on GST on real estate in the next meeting.
On this, Jaitley said, “There is a consensus that something needs to be done”.
The new GST rates will be effective from 1st January 2019.
The 31st GST Council meeting has also approved proposal to form a seven-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.