On December 22, 2018, 31st Meeting of the GST Council under the chairmanship of Finance Minister Shri. Arun Jaitley was held in Vigyan Bhavan, New Delhi.
i. Following decisions were taken in the meeting:
- 6 items have been removed from the 28 per cent tax bracket under the Goods and Services Tax (GST) regime,
- 28 items have been kept in 28 per cent slabs, which are mainly luxury and sin products,
- Rates have been reduced for 22 items under the 28 per cent slab,
- 28% slab rate was applicable to 34 items,in which 6 items are removed now and makes 28 items in the list under 28%.
- GST rate on special flights for pilgrims lowered for economy at 5 percent and business class at 12 percent,
- Air conditioners, dishwashers largely used by upper segment of society, left at 28%.
- GST for cinema tickets less than Rs 100 reduced from 18% to 12%, for tickets above than Rs 100, GST reduced from 28% to 18%.
- The council rationalised the 28 per cent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab.
- Power bank of Lithium ion batteries, video games, small sport related items, accessories for carriages for disabled removed from 28% slab.
- Third party insurance lowered from 18% to 12%,
- Solar powered items lowered to 5% slab,
- 33 items came down from 18% to 12% & 5%,
- 13 items of automobile parts, 8 items of cement industry will remain under the 28 per cent,
- Third party insurance has been brought down to 12 per cent,
- IIM courses and Bank charges (savings bank, Jan Dhan Yojana) has been exempted,
- New return filing system will be started on trial basis from April 1 which will be implemented mandatorily by July 1,
- Due date for GST Annual Return and Audit Report extended till 30th June 2019.
ii. The GST rate reduction will have an overall impact on revenue of Rs 5500 crore.
iii. The new rates would be effective from 1st January 2019.
i. The GST Council also approved the 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.
ii. The Group of Ministers will be assisted by the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning).
iii. It also gave in-principle approval of creation of a Centralised Appellate Authority for Advance Ruling (AAAR) to deal with cases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue.
iv. Additionally, section 50 of the CGST Act will be amended to allow charging of interest only on the net tax liability of the taxpayer.
v. The GST council in its 31st meeting decided to refer the following issues to Committees / GoM indicated against them:
- To Law Committee and Fitment Committee: To extend the Composition scheme to small service providers and to propose the rate of tax and threshold limit.
- To Committee of States: Tax rate on lotteries.
- To Law Committee and Fitment Committee: Taxation of residential property in real estate sector.
- To GoM on MSMEs: Threshold limit of exemption under GST regime.
There were around 226 goods in the 28 per cent category when Goods and Services Tax (GST) was implemented on July 1, 2017.
♦ Union Minister: Shri Arun Jaitley.
♦ Minister of State: Shri Shiv Pratap Shukla, Shri P. Radhakrishnan