Current Affairs PDF

25th GST Council meet held in New Delhi

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

25th meeting of the Goods and Services Tax (GST) Council was held in New Delhi on January 18, 2018.

  • The meeting was chaired by Union Finance Minister, Arun Jaitley.
  • During this meeting, the GST Council recommended many relief measures regarding GST rates on goods and services.
  • Various approaches to ease the return filing compliance burden and the need for the implementation of anti-evasion measures were also discussed during this meeting. However no decision has been taken in this regard.

 GST Council reduces tax rates on 29 goods and 53 categories of services

Highlight of the 25th GST Council meet was the reduction of tax rates on 29 goods and 53 categories of service.

  • The new rates will be applicable from January 25, 2018.
  • Jaitley stated that although latest rate reductions would affect Central Government’s GST revenue, the impact would be small.

Some of the services for which the rates have been cut:

ServiceReduced RatePrevious Rate
Admission to Theme Parks18%28%
Mining & Exploration of Petroleum and Natural Gas12%18%

Some of the services for which the rates have been cut:

GoodsReduced RatePrevious Rate
Biodiesel buses used for public transport18%28%
Sugar boiled confectionery, drinking water packed in 20 litre containers, biodiesel12%18%
LPG supplied to domestic consumers by private distributors5%18%

Quick Facts about Goods and Services Tax (GST):

GST is a destination-based, single indirect tax that is levied on consumption of goods or use of services across India.

  • It was rolled out in India from July 1, 2017.
  • GST replaced 16 levies (7 central taxes and 9 state taxes), consequentially creating India as one market with one tax rate.
  • Goods and Services Tax (GST) Council headed by Union Finance Minister Arun Jaitley and comprising representatives of all states have finalised four tax brackets under GST viz. 5%, 12%, 18% and 28%.