GST

In what comes as a major relief, the tax imposed on 66 items have been reduced to certain extent. Finance Minister Arun Jaitley said that based on the feedback from traders and civil societies, the decisions were taken at the 16th GST council meeting on Sunday. The committee recommended reduction in taxes for 133 items of which only 66 were accepted.

Currently entertainment tax is levied by individual states, ranging from 28-110%. The weighted average for the entire country is about 30%. As per the decision of the council, 18 percent tax is levied on movie tickets costing Rs 100 and below and those about 100 rupees will garner 28 percent tax. State governments give an exemption to cinema of the regional language. With GST there will be no such centralised exemption. However, the finance minister said if a state wants, it can refund the state GST for promoting regional cinema.

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The traders, manufacturers and restaurant owners with turnover of up to Rs 75 lakh can pay taxes at the rate of 1, 2, and 5 percent and can opt for a composition scheme. In the next meeting of the Council on 18 June, it will take up lottery taxes and e-way bill.