Mains Paper 3: Economy | Mobilization of resources
From the UPSC perspective, the following things are important:
Prelims level: Goods and Services under various brackets of GST
Mains level: Issues related to GST
- The GST Council slashed GST rate on over 20 items, including TV screens, movie tickets and digital cameras, in a relief for traders and common man.
- The government has also rationalized the 28 per cent slab by bringing down the tax rate on seven items in the highest bracket, thereby leaving only 28 items in the slab.
Items set to get cheaper after GST slash
From 28% to 18%
- Pulleys, transmission shafts and cranks, gear boxes etc., falling under HS Code 8483
- Monitors and TVs of upto screen size of 32 inches
- Re-treaded or used pneumatic tyres of rubber;
- Power banks of lithium ion batteries. Lithium ion batteries are already at 18%. This will bring parity in GST rate of power bank and lithium ion battery.
- Digital cameras and video camera recorders
- Video game consoles and other games and sports requisites falling under HS code 9504.
From 28% to 5%
Parts and accessories for the carriages for disabled persons
GST rate reduction on other goods
18% to 12%
- Cork roughly squared or debagged
- Articles of natural cork
- Agglomerated cork
18% to 5%
- Marble rubble
12% to 5%
- Natural cork
- Walking Stick
- Fly ash Blocks
12% to Nil
- Music Books
5% to Nil
- Vegetables, (uncooked or cooked by steaming or boilinginwater), frozen, branded and put in a unit container
- Vegetable provisionally preserved (for example by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption.
- Exemption from GST on supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
- Exemption from GST on proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
- Exemption from IGST/Compensation cess on vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
- Rate of 5%/18% to be applied based on transaction value of footwear
- Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
For a precise reading , please navigate to the homepage : GST Council