GST Council meeting witnesses more rate cuts
Removing six items from the highest 28 per cent slab, the GST Council cut rates on 23 goods and services in its 31st meeting Saturday, a move which will cost the exchequer around Rs 5,500 crore a year and Rs 1,375 crore in the remaining three months of this fiscal.
“We are glad that the GST council has recognized the issue.We are however disappointed that the expected drop in GST rates for under construction houses hasn’t come in during this session but are hopeful that there will be a positive outcome in the next committee meeting in January . This remains a long standing demand of the residential sector and continues to remain a deterrent for prospective property buyers. We do hope that when the reduction happens it will result in a fillip to the sector.” Said ShishirBaijal, Chairman & Managing Director, Knight Frank to Realty Plus Magazine.
The 28 per cent GST rate on movie tickets priced above Rs 100, television screens and monitors up to 32 inches, digital cameras, video games consoles and power banks with lithium-ion batteries was cut to 18 per cent while parts and accessories for carriages for the disabled were brought down to 5 per cent.
With this latest round of rate reduction, 97.7 per cent of the 1,211 items under the GST now fall in tax slabs of 18 per cent and below among the five broad categories of zero, 5, 12, 18 and 28 per cent. Rate cuts for items such as cement and automobiles in the 28 per cent slab were discussed in the meeting but given the high revenue implications, members of the Council decided against a rate cut said Finance Minister ArunJaitley.
“Rationalisation of GST for the input materials for the construction industry will help in revitalising the sector.”RohitPoddar, Managing Director, Poddar Housing and Development ltd shared with Realty Plus.