SUV prices to zoom; GST council lowers rates on 40 daily use items
11 September 2017
The GST Council, at its 21st meeting held at Hyderabad on Saturday, recommended an increase in compensation cess for mid-segment and large cars, effective Monday. The Council also announced lower rates on daily use items like idli / dosa batter, raincoat, brooms, corduroy fabric, computer monitors up to 20 inches, cotton quilts, rubber bands and kitchen gas lighters.
The GST Council announced a hike in cess on mid-sized cars by 2 per cent, taking the effective GST rate to 45 per cent while the cess on large cars has been hiked by 5 per cent taking total GST rate to 48 per cent. For luxury cars and SUVs the hike in cess has been kept at 7 per cent, which will take overall GST impact on such vehicles to 50 per cent.
''Notification regarding increase in the effective rates of compensation cess on specified motor vehicles will be issued on 11 September 2017. Effective from 00 hours the same day,'' the Central Board of Excise and Customs (CBEC) said in a tweet on Sunday.
As per the CBSE release, khadi fabric sold through KVIC shops have been exempted from the GST, which was implemented from 1 July. The Council also announced tax exemption to items like brooms and brushes
The CBEC also released the list of 40 items on which the Council decided to lower the tax rate.
Accordingly, items like saree fall, dhoop batti, corduroy fabric, walnut, dried tamarind and roasted gram will be taxed at a lower rate of 5 per cent against the earlier rate of 12 per cent.
Plastic raincoats and rubber bands have been lowered to 18 per cent and 12 per cent, respectively, against the earlier level of 28 per cent. Idli / dosa batter will attract 12 per cent GST, against 18 per cent earlier. Kitchen gas lighters will attract 18 per cent GST against 28 per cent earlier while prayer beads will fall in 5 per cent slab against 18 per cent previously.
Computer monitors of size of up to 20 inches will attract 18 per cent GST against 28 per cent, thus bringing monitors from 17 inch to 20 inch size under the same tax bracket.
Cotton quilts costing up to Rs1,000 will attract 5 per cent while those above that will attract 12 per cent GST, against the earlier uniform rate of 18 per cent.
Tableware, kitchenware, other household articles and toilet articles of porcelain or china or those other than porcelain or china clay will attract 12 per cent levy against 18 per cent and 28 per cent, respectively. Bells, gongs and the like, non-electric, of base metal; statuettes and other ornaments of base metal will attract 12 per cent GST against 18 per cent earlier.
The rate revision in these 40 items followed a review by the fitment committee found anomalies in the GST levied in these products.