GST Council cuts tax on 30 items of common use

had on 4 September authorized the Council to raise the cess on cars attracting 15% cess to a maximum of 25% through an Ordinance.

Rahil Ansari, Head, Audi India said taxes on the automobile sector were already very high and that the industry expected its unfulfilled potential to increase after the implementation of GST and rationalization of taxes.

The Council also expanded the ambit of the 5% GST on branded packaged food items to include those products which were earlier sold under a brand name but the producers chose to abandon their trade marks to escape the tax. The Council also decided to exempt handicraft makers below ₹20 lakh sales and sell in other states from the need to take temporary registration. Khadi fabrics sold through Khadi and Village Industries Commission will be exempt from 5% GST.

The Council also decided to give extra time to file various tax returns for the month of July in view of the technical glitches in the return filing process.

As per the revised return filing schedule decided by the Council, the last date for filing GST return 1 dealing with supplies made by companies that was to expire on Sunday, has been extended to 10 October. The Council also gave extra four months for filing a summary return for the month of July, the original deadline for which had expired on 25 August.

Acknowledging technical glitches in the system, the Council decided to set up a ministerial panel to oversee the functioning of GSTN, the company that processes tax returns.