GST Council meeting begins under chairmanship of Finance Minister Arun Jaitley. LIVE updates

Update at 4:40 PM: Today's GST rate reduction will have an overall impact on revenue of Rs 5500 crore: FM Arun Jaitley

Update at 4:39 PM: The 31st GST Council meeting has approved proposal to form a 7-Member Group of Ministers to study the revenue trend, including analysing the reasons for structural patterns affecting the revenue collection in some of the states. The study would include the underlying reasons for deviation from the revenue collection targets vis-a-vis original assumptions discussed during the design of GST system, its implementation and related structural issues: FM Arun Jaitley  

Update at 4:38 PM: The new GST rates will be effective from 1st January 2019: FM Arun Jaitley  

Update at 4:26 PM: The decision in relation to taxation of residential property in Real Estate sector to come in the next meet in January. Decisions on Natural Calamity Cess and MSMEs will also be taken in the next meeting. The Composition Scheme will be modified for small traders only. It will also be decided in the next meeting: FM Arun Jaitley

Update at 4:22 PM: All decisions have been taken after consensus: Finance Minister

Update at 4:11 PM: 28% slab rate is only applicable on 34 items now. These are luxury items: Finance Minister

•  6 more items have been reduced. Only 28 items are left in the 28% GST slab. Most of the items used by common man have been lowered. 
• Sports-related items and videos games from 28% to 18%
• Accessories for carriages physically disabled from 28% to 5%
• 3 items lowered from 18% to 12% 
• 1 item came from 18% to 5%
• Some items have come from 12% and 5% to NIL
• Movie tickets up to Rs 100 brought down to 12% and above Rs 100 has been brought down to 18% from 28%
• 3rd party insurance lowered from 18% to 12%
• Solar powered items lowered to 5%

Update at 4:03 PM: We have considered the recommendations of the Fitment committee. Extensive discussions took place and both sides put their opinions: Union Finance Minister Arun Jaitley

Update at 4:00 PM: Finance Minister Arun Jaitley addresses press briefing following the GST council meeting

Update at 3:50 PM: 22 goods have come down from 28%. Goods like TV, auto parts, computers etc included. Only the luxury & sins goods items remain in the 28% slab. GST on real estate will be discussed in the next GST Council meeting: Uttarakhand Finance Minister Prakash Pant 

Update at 2:58 PM:  33 items have come down from 18% to 12% & 5% as they are a common man’s consumption goods. The original demand by Congress that all goods should come down to 18% & below except luxury items has been agreed by the Government. Except for 34 items, all other will come down to 18% & below: V Narayanasamy, Puducherry Chief Minister

Update at 11:30 AM: 

Update at 10:58 AM: GST Council meeting begins at Vigyan Bhavan 

---

The 31st Goods and Services Tax (GST) Council meeting will be held on December 22 in the national capital amid speculations over reductions in tax rates.

Earlier on Tuesday, at the Republic Summit 2018, Prime Minister Narendra Modi announced that 99% of the non-luxury goods and services would soon fall under the 18%-or-less GST slab.

"We have reached a point where 99% things will be brought under 18% GST charges. We are heading towards a direction where only minimum items will be under the slab of more than 18% which all also be only luxury products. I will make sure that GST will be made simple or easier. I and my government will ensure that we see and fulfill bigger dreams", the Prime Minister said on Tuesday.

READ: BIG ANNOUNCEMENT: 99% Items Soon To Fall Under 18%-or-under GST Slab, Says PM Modi In His Keynote Speech At Republic Summit 2018

The GST Council, on Saturday, is also likely to discuss the revenue position of the Centre and states, easing refund-related rules for exporters. Furthermore, it is also likely to take up the issue of transferring ownership of the IT framework GST Network in a government-owned company, the proposal of which was approved by the Cabinet in September.

Headed by Finance Minister Arun Jaitley, the Council is the highest decision-making institution of the new indirect tax system that came into effect from July 1, 2017. 

READ: Why PM Modi's Mega '99% Items In 18%-or-under GST Slab' Announcement Is A Big Blow To The Opposition

The change in the GST structure, especially with just months to go before the all-important 2019 Lok Sabha elections, apart from decreasing the tax burden on the end users, also takes away the major pain point that the opposition had insisted on flagging about GST -- that with four tax slabs, it was too complex. 

For the entirety of the time since GST was rolled-out effectively unifying the country into one market, the government has maintained that it was a work in progress and that they are constantly speaking to stakeholders, especially the various states in order to streamline the goods and services tax. 

READ: Finance Minister Arun Jaitley Calls Rahul Gandhi's Idea Of A Single GST Slab “stupid”