The Goods and Service Tax Council that met on Sunday slashed the rates of 66 items, including packaged food items, computers, printers and insulin.
The Council jacked up the rates applicable for telecom sector to 18% and announced maintaining of 28 percent tax on all cinema tickets above Rs. 100.
"We have received representation for about 133 goods, and after considering representations, the GST council has reduced tax levels in 66 cases," added Jaitley while addressing that the reduction has been on two principles.
The rates of cinema tickets priced below Rs. 100 has been reduced to 18 percent.
"As you know, entertainment tax currently is imposed by state governments. And the range is from 20 per cent to 110 per cent. The weighted average comes to about 30 per cent. But state governments also give exemptions to film in their own language," said Mr Jaitley.
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A film whose tickets are priced above Rs. 100 will attract 28 per cent while those film with tickets priced at Rs. 100 or below would be in the 18 per cent slab.
While fixing the GST on cashew nuts, the minister said that the rates have been reduced from 12 percent to five percent.
"Packaged foods including ketchups, food mixes, pickles etc have been reduced from 18 percent to 12 percent due to their excessive usage amongst the common people," added Jaitley.
On being asked about the taxation rates on sanitary napkins, the Finance Minister said, "What has been decided earlier remains. No further rates for this category."
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The Council has till now fixed rates of more than 1200 goods and 500 services. Last, it finalised rates for few contentious goods such as gold and jewellery, agricultural implements, biscuits, footwear and textile.
However, it may also discuss the GST rate for the telecom sector, which has been fixed at 18 percent.
The telecom industry has demanded a lower rate, arguing that an 18 percent GST rate, higher than the current 15 percent service tax for sector, will adversely affect the industry.
Small scale manufacturers and traders are also big gainers. Those whose annual turnover was less than 20 lakh won't have to pay any tax.
Entrepreneurs whose turnover is between Rs. 20 and Rs. 75 lakh, will have to pay nominal taxes under the composition scheme, reported NDTV
"Under the composition scheme, if trader you have to pay 1 per cent tax. Manufacturer will have to pay 2 per cent and restaurant owners 5 per cent," said West Bengal Finance Minister Amit Mitra and added, "These are people centric measures."
The Council headed by Jaitley, is scheduled to meet once more before the rollout of the new indirect system fromJuly 1 on June 18 at the Vigyan Bhawan.
(With inputs from ANI)
