Government to meet fiscal deficit target of 3.3%: Jaitley

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Monitors and TV screens up to 32-inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.GST on movie tickets costing up to 100 rupees was cut to 12 per cent from 18 per cent, while tickets over 100 rupees will attract 18 per cent tax, against 28 per cent earlier.

The decision comes days after Prime Minister Narendra Modi said that his government wanted to ensure that "99 per cent items attract sub-18 per cent GST slab".

The new tax rates will come into effect from January 1, 2019. The tax rate on 13 auto part items, that fetch around Rs 20,000 crore in revenue annually, has also been left unchanged at 28 percent. "This was a very important GST Council meeting, particularly in view of recent political developments, and it's great to see that all decisions have again been taken by consensus", said Pratik Jain, partner and leader (indirect tax), PwC India.

The three items which will now attract a 12 per cent tax under GST, instead of the existing 18 per cent, include articles of natural cork, and corks roughly squared or de-bagged.

"The Council has approved the proposal to form a seven-member GoM to study the revenue trend, including analysing reasons for structural patterns affecting revenue collection in some of the states", Jaitley said. It is good if bare minimum products are kept in the 28 per cent slab, keeping in mind the scope of the GST. "A Group of Ministers will be created, and it will take expert opinion from National Institute of Public Finance and Policy as some states are not showing improvement in revenues".

Creation of a Centralised Appellate Authority for Advance Ruling (AAAR) to deal withcases of conflicting decisions by two or more State Appellate Advance Ruling Authorities on the same issue.

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The GST on real estate will be reviewed in the next meeting, he added.

Jaitley said revenue collection has been higher in case of manufacturing, and tepid in case of services.

The Council also chose to form a seven-member Group of Ministers (GoM) to study anomalies in tax collection in some of the states which showed wide deviation from what was expected in terms of shortfall.

It will also look at the issue of extending composition scheme - a scheme to benefit small taxpayers by providing concessional GST without ITC benefits - to small service providers. Revenue Secretary Ajay Bhushan Pandey said that the new return filing system will be launched on trial basis from April 2019 and would be made mandatory from July 1, 2019.

"There would be a single cash ledger for each tax head".

Tax rate on lotteries - Committee of States. "The modalities for the same shall be finalized shortly", it said.

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