The much-awaited Goods and Services Tax which will come into force on July 1st has been revised by the Union Government, a key decision taken after the 16th GST Council meet concluded on Sunday. Out of the 133 items on which the representations were received from the industries and the State governments, the GST council reduced the tax level for 66 items.
Especially, film industry has been vocal about the initial proposal of 28pc tax of the GST. While Bollywood was convinced with it, the regional film industries have been raising voice with the high-tax structure levied on the film tickets stating that it would be a death knell to regional and small-films.
The changes made in the tax levels of several articles by the GST council include:
- GST on cashew nuts reduced from 12 per cent to 5 per cent
- GST on pickles, chutney, sauces, instant food mixes were charged at 18 per cent and are now reduced to 12 per cent
- GST on kajal slashed from 28 per cent to 18 per cent
- GST on insulin reduced from 12 per cent to 5 per cent
- GST on school bags reduced from 28 per cent to 18 per cent
- GST on children’s colouring and drawing books revised from 12 per cent to nil
- GST on cutlery reduced from 18 per cent to 12 per cent
- GST on some tractor components will now attract 18 per cent compared to 28 per cent under previous arrangement
- GST on computer printers reduced from 28 per cent to 18 per cent
- GST rate of 28 per cent will be maintained for all cinema tickets above Rs 100 while for tickets below Rs 100, it will be reduced to 18 per cent