GST Council Cuts Rates On 23 Items, Big Relief For Film Industry

The Council also decided to extend the due date for the filing of the GST annual returns to June 30, 2019.The Bollywood film fraternity welcomed the move to cut GST rates of movie tickets.

NEW DELHI: The GST Council reduced tax rates on 23 goods and services, including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy.The reduced rates are likely to come into effect from January 1, 2019, Finance Minister Arun Jaitley told reporters after the 31st meeting of Goods and Services Tax (GST) Council here.

The reduction will result in annual revenue implication of Rs 5,500 crore. The new rates could come into force by the New Year, the minister said at a briefing.

Seven items that saw tax rates being slashed from the 28% bracket are certain vehicle parts used in agriculture, monitors and TVs up to 32 inches, retreaded tyres, power banks, digital cameras, videogame consoles (all from 28% to 18%), and parts and accessories for the carriages for disabled persons (from 28% to 5%).

The GST Council has decided to reduce GST levied on cinema tickets priced up to Rs 100 from 18 per cent to 12 per cent. Film tickets priced above Rs 100 will attract GST at a rate of 18 per cent, instead of the earlier 28 per cent.

“GST rate on cinema tickets above Rs. 100 shall be reduced from 28 per cent to 18 per cent and on cinema tickets up to Rs 100 from 18 per cent to 12 per cent,” a statement by the Finance Ministry said.

Air travel of pilgrims by non-scheduled/charter operations being facilitated by the government under bilateral arrangements will attract a lower GST rate of 5 per cent.

The Bollywood film fraternity welcomed the move to cut GST rates of movie tickets.Services supplied by banks to basic savings bank account and Jan Dhan accounts will be exempt from GST.

Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills.

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