Council may increase GST rate on all kinds of used cars to 18 per cent
Council may increase GST rate on all kinds of used cars to 18 per cent
M.U.H
21/12/202422
JAISALMER: The GST Council in its 55th meeting on Saturday is likely to announce changes in tax rates on several goods and services. As per sources, the fitment panel of the Council has decided to levy 18% GST on all kinds of used cars. Currently, used petrol cars up to 1200 cc and diesel cars up to 1500 ccc are taxed at 12%, those above these specifications are taxed at 18%.
The Council is likely to agree with the fitment panel’s recommendation and raise GST rate to 18% uniformly to all used cars including the EVs. The sources said the GoM on insurance would submit its report to the Council on Saturday, but it is not clear if any decision on the same would be taken during the meeting in Jaisalmer.
The GoM has recommended complete waiver of GST on insurance premium for health insurance with `5 lakh cover. The Council may give its nod to exempt gene therapy from GST. It may extend concessional 5% rate on inputs of food preparations that are supplied for free distribution to economically weaker sections under government schemes.
The Council is likely to clarify that pepper whether fresh green, or dried pepper and raisins, when supplied by an agriculturist are not liable to GST.
Sources said the Council might give its nod to insert a provision in CGST Act so as to empower the government to enforce the track and trace mechanism for specified commodities. The system is based on a Unique Identification Marking, which will be affixed on certain goods or the packages. The insertion of the provision will provide a legal framework for developing such a mechanism.
It might come up with clarification on recording of details of name of the state of the un-registered recipient as well as correct declaration of place of supply in respect of supply of ‘Online Services’. In cases of supply of ‘Online Services’ like supply of online money gaming and other online services to unregistered recipients, the supplier needs to record name of the state of the unregistered recipient on the tax invoice.
