NEW DELHI: The central and state governments on Sunday reduced tax rates on 66 items. Certain kitchen items like pickles and mustard sauce as well as movie tickets costing up to Rs 100 will be taxed less than originally planned.
Movie tickets costing Rs 100 and below will now attract 18 per cent goods and services tax (GST) as against 28 per cent proposed earlier, while those above Rs 100 will continue to attract 28 per cent.
Kitchen use items like pickles, mustard sauce and morabba will attract 12 per cent GST as against 18 per cent earlier. Also, tax rates on cashewnuts have been cut to 5 per cent from 12 per cent.
The GST Council also decided that traders, manufacturers and restaurant owners with a turnover of up to Rs 75 lakh can opt for a composition scheme and pay taxes at the rate of 1, 2, and 5 per cent respectively.
The council also lowered rates on children's drawing books to nil from 12 per cent. Computer printers will attract 18 per cent tax as against 28 per cent earlier.
The tax on insulin and agarbattis have also been lowered to 5 per cent, while school bags will attract tax of 18 per cent. The tax rate on kajal has been lowered to 18 per cent from 28 per cent.
"The GST Council has reduced tax rates of 66 items as against representations received for 133 items," finance minister Arun Jaitley told reporters here after the 16th meeting of the GST Council.
The next meeting of the council will be on June 18, when it will take up lottery taxes and e-way bills.
On the issue of review of the GST rate on hybrid cars, it was decided that the council will take it up after considering the states' comments on a detailed paper issued on the matter earlier.
Here are the old GST rates and the revised rates for some of the items. The new rates will be applicable from July 1
| Item | Old GST rate | New GST rate |
| Cashew | 12% | 5% |
Packaged food; including some fruits and vegetables, pickles, toppings, instant food sauces | 18% | 12% |
| Agarbatti | 12% | 5% |
| Dental wax | 28% | 18% |
| Plastic beads | 28% | 18% |
| Insulin | 12% | 5% |
| Plastic tarpaulin | 28% | 18% |
| School bags | 28% | 18% |
| Exercise books | 18% | 12% |
| Colouring books | 12% | NIL |
| Precast concrete pipes | 28% | 18% |
| Cutlery | 18% | 12% |
| Tractor components | 28% | 18% |
| Computer printers | 28% | 18% |