The GST Council of India has lowered the rate of Goods and Service Tax on 40 daily use items, and the tax on automobiles was not raised – as it was expected to be; the announcement was keep tax burden lower than pre-GST days.

The council, which met in Hyderabad, also reduced the GST rate on about 30 commonly used products like dosa batter and rain coats as it sought to pass on benefit of better than expected revenue receipts under the two-month old tax regime to the consumer. The revised rates including the cess will be effective from the date they will be notified. Dried tamarind, custard powder, disposables and rubber bands are among the other items on which tax rate has been reduced.

The council, which met in the capital of Telangana on Saturday for nearly 8 hours, softened the blow on the car industry by introducing only a part of the 10% cess on automobiles, and imposing it in a graded manner. The revised rates including the cess will be effective from the date they will be notified. Dried tamarind, custard powder, disposables and rubber bands are among the other items on which tax rate has been reduced. After meeting, it was said that small petrol and diesel cars, hybrid cars or on 13 seater vehicles.

“The council decided that it is only in large vehicles, affordability of consumers is high. Accordingly, the cess has been increased by two, five and seven percentage points. Even then, the pre-GST rate has not been restored even though we had a headroom for increasing by ten percentage points”, said Arun Jaitley.

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