Mobile phones to get more expensive; GST council raises tax
Mobile phones are expected to become more expensive as the government has raised the rate of Goods and Services Tax (GST) on them from 12% to 18%. The hike was announced by Finance Minister Nirmala Sitharaman at a press conference after the 39th GST Council meeting. Here are some other changes announced after the meeting, which will be effective from April 1.
GST on mobile phones raised to correct inverted duty structure
Sitharaman said that mobile phones and certain specified parts will attract a GST of 18% instead of 12% to correct the inverted duty structure, wherein inputs are taxed at higher rates than the finished products. However, the FM said that the rationalization of the tax structure for other products—such as fertilizers, man-made yarn, fiber, footwear, etc.—will be done in the next GST Council meeting.
Other highlights from today's GST Council meeting:
The GST on both hand-made and machine-made matchsticks has been rationalized to 12%. The GST on Maintenance, Repair, and Overhaul (MRO) services of aircraft was cut from 18% to 5%. GSTR-1 will be compulsory for B2B supplies and exports. B2C and non-filers of GSTR-3B will be exempted from filing GSTR-1. Deadlines for filing GST9R and GSTR9C for FY2018-19 have been extended till June 30.
Late annual filing fee waived if turnover below Rs. 2cr
Sitharaman said that late fees will not be levied for the delayed filing of the annual return and reconciliation statement for the current and the previous fiscals for taxpayers with a turnover of less than Rs. 2 crore.
Infosys asked to fix GSTN glitches by July
The GST Council has also asked Infosys to fix technical glitches in the GSTN (Goods and Services Tax Network) system by July 2020. While filing GST returns through the network, users have reported facing issues such as delay or non-receipt of OTP, auto logouts, login errors, Gateway timeouts, etc. Infosys chief Nandan Nilekani had sought time till January 2021 to fix the issues.
