In a move that is likely to make mobile phones costlier, the Goods and Service Tax council in its 39th meeting on Saturday decided to increase the GST rate on mobile phones and specific parts to 18 per cent.
In a move that is likely to make mobile phones costlier, the Goods and Service Tax council in its 39th meeting on Saturday decided to increase the GST rate on mobile phones and specific parts to 18 per cent from April 1, news agency PTI reported. Presently the tax slab on mobile phones and their parts is 12 per cent. The meeting chaired by Finance Minister Nirmala Sitharaman, also decided to bring Maintenance, Repair and Overhaul (MRO) services of aircraft, under the 5 per cent slab from the current 18 per cent slab. The Council additionally, decided to rationalise the tax rate on both, hand-made and machine-made matchsticks to 12 per cent.
Sitharaman announced that late fees will not be levied for the delayed filing of the annual return and reconciliation statement for 2017-18 and 2018-19 for taxpayers with an aggregate turnover of less than Rs 2 crore, a move that is likely to benefit small businesses. However, it was also decided that delayed GST payments will attract interest on net tax liability from July 1.
While talking about the GSTN system the Finance Minister said that Infosys has been asked to deploy more manpower along with increasing capacity of hardware of the Goods and Service Tax Network to rid the system of glitches. Infosys, the private company behind the GSTN design will also be tasked to work out the glitches by June 2020. Sitharaman added that MSMEs will be relaxed from the furnishing of reconciliation statements in the form of GSTR 9C for the financial year 2018-19 for all taxpayers, having aggregate turnover below Rs 5 Crores.