Council decided to increase tax on mid segment cars from 43% to 45%. DH Photo
Council decided to increase tax on mid segment cars from 43% to 45%. DH Photo
The 21 Goods and Services Tax (GST) Council meeting here, decided not to change tax structure for small cars while the total tax on midsize cars would be increased from 43% to 45%.
The tax on large cars would be raised to 48% from 43% and SUVs will attract a 50% tax rate instead of the present 43%.
“There will be no additional burden on small car buyers," Arun Jaitley who chaired the meeting told reporters after the meeting. There will be a status quo on the tax rates on 1200cc petrol and 1500 cc diesel cars.
Council decided to increase tax on mid segment cars from 43% to 45%. On large cars which got an 8% advantage earlier the cess was increased by 5%, on SUVs 7%.
The Council also decided not to increase the total tax on 13-seater vehicles, the Minister said. All this will not be applicable to Hybrid cars he said.
The Council following the complaints by Finance Ministers of several States on glitches in the GST Network portal and that the traders were facing problems while filing their maiden returns for July, decided to set up a committee consisting a group of ministers to monitor and resolve the IT challenges faced by the GST network.
“It decided to appoint a committee, to interact with the GSTN Network to ensure smooth transformation,” Jaitley said.
The government also announced an extension of the deadline by a month for filing GST Returns (GSTR-1) to October 10. The original deadline was September 10. Similarly, the deadline for filing GSTR-2 (purchase returns) and GSTR-3 (match of GSTR-1 and GSTR-2) for July have also been extended to October 31 and November 10 respectively, the Revenue Secretary Hasmukh Adhia said.
The overall GST collection has been quite robust at Rs 95,000 crore for July with 70% of those registered already filing their returns, Jaitley said.
The Council also decided to exempt artisans with a turnover of up to Rs. 20 lakh from registration under the GST and to exempt Khadi fabric sold through KVICs from the tax net.
The council upon the request of the Telangana government for further reduction on tax on development projects agreed to expand the definition of Contract works.
Over 150 delegates attended the meeting held at the Hyderabad International Convention Centre (HICC). This was the third meeting of the GST Council since the launch of the new indirect tax regime.