GST Rates: GST rates changed for 30 items, deadline for GSTR 1 filing extended to October

HYDERABAD: Bringing some cheer to the automobile industry, the Goods and Services Tax Council on Saturday decided impose only a part of the total 10% increase in cess on motor vehicles, lowered tax rate on 30 household items and extended date for filing of returns.

The Council also accepted a key demand of the automobile industry and introduced gradation in the cess imposition rate by containing the overall tax blow on mid-size cars, hybrid and 13 seater vehicles. The cess rate for mid size cars has been raised to 17% (out of total cess of 25%) from 15% now. The total tax incidence on this category has gone up to 45% from 43%. In the case of luxury cars and SUVs, the cess has been raised to 20% ( of total 25%) from 15 % now. Total tax incidence on this segment would go up to 48% from 43% now.

There is no change in overall tax incidence on 1200 cc petrol and 1500cc diesel cars, finance minister Arun Jaitley told reporters after the council meeting here.

Here is how it stacks up for now:

► Small cars, 13-seater vehicles & hybrid cars : No change
► Mid-size cars increased by 2%
► Large cars increased by 5%
► SUVs increased by 7%

The council also decided to reduce tax rate on 30 goods including idly batter, custard powder, dried tamarind, Dhoop agarbatti, raincoats, rubber bands.

Khadi sold at the KVIC outlets has been exempted from GST, said Jaitley.

The Council has amended the framework of branded food products to prevent abuse by some manufacturers. Those products that had registration as on May 15, 2017 would face 5% GST. Besides, all those packaged products that bear some symbol on which exclusivity or actionable claim can be made will also face 5% tax and not enjoy tax exemption.

The council after a detailed review of the IT backbone and GSTN decided to form a group of ministers to review the portal’s working and extended the deadline for filing of returns. Summary return form GSTR3B will now be applicable till December and GSTR1 for July can be filed by large taxpayers (over Rs 100 crore turnover) by October 3 and rest by October 10th. The deadline for this form was September 10.

Handicraft traders who sell to other states will not have to register if their turnover is below Rs 20 lakh.

The council also reviewed GST collections so far.

GST, the four-tier tax structure of 5, 12, 18 and 28 percent, came into force on July 1.

GST Council is a federal forum with both centre and states on board. It is made of the finance minister (as Chairman), the union minister of state in charge of revenue or finance, the Minister in charge of finance or taxation or any other minister, nominated by each state government.

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