New Delhi: The GST (Goods and Services Tax) Council on Saturday (March 14, 2020) announced that the tax on mobile phones and specific parts will be increased from 12 per cent to 18 per cent. The decision of tax hike was taken in the GST council meeting chaired by Finance Minister Nirmala Sitharaman.
Addressing a press conference Finance Minister Nirmala Sitharaman said, ”It was decided to raise the GST rate on mobile phones and specific parts, presently attracting 12% GST, to be taxed at 18%.”
The finance ministry also extended the deadline for filing the GST9R and GSTR9C for the financial year 2018- 19 to June 30, 2020.”Late fees not to be levied for the delayed filing of the annual return & reconciliation statement for 2017-18 & 2018-19 for taxpayers with aggregate turnover less than Rs 2 crore,” Sitharaman said.
Meanwhile, the aviation industry saw some drops in the tax rates as Sitharaman announced that the government has decided to reduce the GST rate on MRO services in respect of aircraft from 18 per cent to 5 per cent with full ITC (input tax credit).
Addressing media Sitharam said that the government has given approval to the Know Your Supplier scheme.
Sitharaman said there will be one rationalised rate of GST at 12 per cent for both hand-made and machine-made matchsticks. The GST rate was 18 per cent on machine-made and 5 per cent on man-made matchboxes.
