India Inc Sunday cheered the GST Council's decision to slash tax rates on 23 goods and services and said the move will push demand and boost the economy.

The council reduced tax rates on goods and services including movie tickets, TV and monitor screens and power banks, and exempted frozen and preserved vegetables from the levy.

The reduced rates are likely to come into effect from January 1, 2019, Finance Minister Arun Jaitley told reporters after the 31st meeting of the Goods and Services Tax (GST) Council here Saturday.

"At a time when stronger demand can speed up growth, the reduction in tax rates for items used by different sections of society can be expected to impart a necessary boost to the economy," CII Director General Chandrajit Banerjee said.

Rajeev Talwar, president, PHD Chamber of Commerce and Industry said consistent indirect tax revenue growth along with a reduction in high GST rates indicate that the tax base is widening and economic activity is expanding.

Ficci President Sandeep Somany said the GST Council has followed a pragmatic policy by bringing down rates gradually, taking into consideration the revenue realisation and affordability, and this will stabilise and strengthen GST further.

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