The GST rates on 30 items of mass consumption were slashed on Saturday while the cess on mid and high-segment cars went up by 2 to 7 per cent.
 
Briefing the media after the second review meeting post the Goods and Services Tax roll out, Union Finance Minister Arun Jaitley said that in consonance with the recommendations of the fitment committee, the tax rates on approximately 30 goods of common utility, including dry tamarind, custard powder, raincoats, rubberbands and batter for idli and dosa, have been reduced.

The pre-GST rates on some of the items were also slashed. The tax on plastic raincoats and rubberbands, for instance, have been reduced from 28 to 18 and 12 per cent respectively.

Jaitley with the changed nature of economy, the government could afford to have the rates of some these items reduced.

Khadi fabric through Khadi and Village Industries Commission Act of 1956 (KVIC) stores will now be exempted under GST.

About the increase in cess rates on automobiles, he said that while status quo has been maintained for small cars (petrol and diesel), hybrid cars and 13-seater vehicles, the Council decided to increase the cess rates for some segments.

GST cess on mid-segment cars has been increased by 2 per cent, for large segment cars it has been increased by 5 per cent and for SUVs by 7 per cent, he said. He claimed that though the space of increase was 10 pe rcent, the Council did not restore the pre-GST rates.

The eight-hour long meeting was the 21st meeting of the Council.

The council also decided that food items sold under a trademark registered as on May 15, 2017 and also under a name on which exclusivity can be claimed by actionable claim, 5 per cent GST will be charged.

Jaitley said this was done to do away with the disparity created in the trade, as some of the food items sold in open categories had zero GST while branded and packaged had five per cent. He said a section of food industry was getting their registered trademark deregistered and was selling the food items either under a deregistered trademark or under corporate name.

A detailed presentation was with regard to migration of old registrants to GST from earlier regime. On GST revenue collections and distribution of money to the states, he said though the overall collection has been quite robust with more than 70 per cent of the eligible registrants for July filing, the figure of approximately Rs 95,000 crore for July was paid and some spillover of VAT collections of June were also be added

Jaitley said that there is still a very large unutilized IGST, which is used as credit for payment of CGST and SGST and for July out of Rs 48,000 crore IGST, approximately Rs 10,000 crore was adjusted between the Centre and states. He said Rs 37,000 crore is still lying which will be used in subsequent months. #casansaar (Source - NewsHeads)