In a major relief yet again for the consumers,the GST council has lowered the GST rates for a number of daily-use products ranging from idli/dosa batter to kitchen gas lighter. The council which is headed by Arun Jaitley decided not to levy additional tax on small cars of up to 1200 cc in both the segments – viz Petrol and Diesel. Hybrid cars were also given an exemption. This will give a major boost in this segment since these are the fast moving ones.
The rates constitutes to an additional 2 per cent on mid-sized cars, 5 per cent on large cars and 7 per cent on SUVs which would now make the rates on par with pre-GST levels, Finance Minister Arun Jaitley. The date of implementation of the additional cess will be notified later.
“Small petrol and diesel cars enjoyed a tax advantage of 3 per cent post GST. But status quo will be maintained on small petrol diesel cars, so even if it has got cheaper let consumers enjoy the benefit,” Jaitley said.
Tax on mid segment cars had gone down from 48 per cent to 43 per cent and the council decided to increase cess by 2 per cent to 45 per cent, he said.
The products like rubber bands, idli dosa batter, roasted gram, oil cakes, custard powder, dried tamarind, dhoop agarbathies, plastic raincoats, khadi fabric sold through Khadi and Village Industries Commission outlets have been exempted from GST.