Hyderabad: Nearly thirty daily-use items have become cheaper, and small cars have been exempt from the proposed cess, as per the decision of GST Council on Saturday. Whereas, luxury cars, mid-sized and SUVs will get costlier by 2 to 7 percent.
“Tax rates were fixed on the basis of equivalence as we had decided to maintain the tax rates to match pre-GST rates. Under GST, small petrol and diesel cars enjoyed a tax advantage of three percent,” Arun Jaitley told the reporters after an eight-hour long GST Council meeting in Hyderabad.
“However, we have decided to maintain status quo on small petrol and diesel cars. So even if it has got cheaper, let consumers enjoy the benefit,” he added as per a report by Deccan Chronicle.
According to the minister, a 2 percent additional cess will be levied on mid-sized cars, 5 percent on large cars and 7 percent on SUVs, taking the total incidence of taxation to pre-GST levels. An ordinance was publicised and the council on Saturday looked into the quantum of hike.
On the other hand, unbranded food items are exempt from the GST, whereas branded and packaged food items attract 5 percent tax. Hence, many businesses are deregistering their brands to avoid the levy.
The tax has been lowered on dried tamarind, custard power, oil cakes, dhoop batti, dhoop and other similar items, plastic raincoats, rubber bands, rice rubber rolls for paddy dehusking, computer monitors, kitchen gas lighters, brooms, and brushes.