Now, the 28 per cent slab is restricted to only luxury and sin goods, apart from auto parts and cement -- tax rates on which could not be cut due to high revenue implication.

The GST Council also removed four items from 18 per cent slab. Out of these four, three were moved to the 12 per cent slab while one was shifted to 5 per cent.

The three items which will now attract a 12 per cent tax under GST, instead of the existing 18 per cent, include articles of natural cork, and corks roughly squared or de-bagged. Marble rubble was shifted from 18 per cent to 5 per cent tax slab.

GST on movie tickets costing up to Rs 100 has been cut to 12 per cent from 18 per cent, while tickets over Rs 100 will attract an 18 per cent tax, as against 28 per cent earlier. This will have a revenue implication of Rs 900 crore, Mr Jaitley said.

Monitors and TV screens up to 32-inches and power banks will attract 18 per cent GST, as against 28 per cent earlier.

Services supplied by banks to customers holding basic saving bank deposit (BSBD) accounts under financial inclusion scheme Jan Dhan will be exempted from GST, the government said.

The finance minister said rate rationalisation is an ongoing process.

"The next target will be rate rationalisation in cement as and when affordability improves," he said.

The move on GST rates will lead to an annual revenue loss of Rs 5,500 crore, Mr Jaitley said.