New Delhi, December 22: At the GST Council meeting held today, a big rejig in tax rates was witnessed, with seven items being removed from the 28 per cent tax slab rate, and four others shifted from 18 per cent bracket to the 12 per cent. Among list of products whose rates are bound to go down following the amendment, include movie tickets, computers and television sets.

In the top tax slab - 28 per cent - a total of 28 items have been left, which include mostly luxury products and sin services, apart from cement and automobile parts. New GST Rates to be Effective From Jan 1, 2019.

Finance Minister Arun Jaitley, while announcing the changes, said the amendments would adversely impact the exchequer by Rs 5,500 crores.

GST Rates Rejig: Check Full List of Items and Services Turning Cheaper

  1. GST rate on cinema tickets above Rs. 100 shall be reduced from 28% to 18% and on cinema tickets upto Rs. 100 from 18% to 12%.

  2. GST rate on third party insurance premium of goods carrying vehicles shall be reduced from 18% to 12%.

  3. GST rate on computer monitors, television sets and USPs, have been brought down from 28% to 18%.

  4. GST on tyres and power banks of Lithium-ion batteries has been lowered from the 28% tax bracket, to the 18% category.

  5. Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.

  6. Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992at medical establishments, educational institutions, rehabilitation centers established by Central Government / State Government or Union Territories or entity registered under section 12AA of the Income-tax Act shall be exempted.

  7. Services provided by GTA to Government departments/local authorities which have taken registration only for the purpose of deducting tax under Section 51 shall be excluded from payment of tax under RCM and the same shall be exempted.

  8. Exemption on services provided by Central or State Government or Union Territory Government to their undertakings or PSUs by way of guaranteeing loans taken by them from financial institutions is being extended to guaranteeing of such loans taken from banks.

  9. Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).

The Opposition Congress has claimed a political victory after the government agreed to bring down the tax rates on most of the items earlier placed in the 28% bracket.

"The Congress Party has finally jolted Narendra Ji from his deep slumber on Gabbar Singh Tax. Though still drowsy, he now wants to implement what he had earlier called the Congress Party’s, “Grand Stupid Thought”. Better late then never Narendra Ji! (sic)," Rahul Gandhi tweeted.

(The above story first appeared on LatestLY on Dec 22, 2018 08:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).