Mobile Phones To Become Costlier As GST Hiked From 12% To 18%

Mobile Phones To Become Costlier As GST Hiked From 12% To 18%

The GST Council has hiked the Goods and Services Tax (GST) rates on mobile phones and allied parts from 12 per cent to 18 per cent with effect from April 1, Finance Minister Nirmala Sitharaman said. 

The GST Council in its meeting chaired by the Union finance minister on March 14 slashed GST rate on Maintenance, Repair and Overhaul (MRO) services of aircraft from 18 per cent to 5 per cent, with full input tax credit. 

The council also rationalised the GST rates on handmade and machine-made matchsticks to 12 per cent. Hand-made matches used to attract 5 per cent earlier, while machine-made ones attracted 18 per cent.

The due date for filing the annual return for FY 2018-19 has been extended to June 30. For taxpayers with turnover of less than Rs 2 crore, late fees will not be levied for delayed filing and reconciliation statement for 2 years.

Ms Sitharaman said the GST Council has asked Infosys to deploy more skilled manpower and increase capacity of GST Network to ensure that the system is glitch-free by July 2020. There have been a slew of technical issues surrounding the functioning of the tax payment network and the 

The new rates will come into effect on April 1, 2020.