 "Cars and SUVs are beginning to form a larger proportion of the consumption basket")
NEW DELHI (Reuters) - India's Goods and Services Tax (GST) Council said that uniform taxation would be levied on multi utility vehicles and sports utility vehicles, according to a statement.
The body, chaired by India's Finance Minister Nirmala Sitharaman and comprised of state finance ministers, decided all large cars, by whatever name they are called, will attract 22% cess, which is an additional tax imposed over and above GST. The cess tax will be on top of a 28% tax if their length exceeds 4000 mm, have engine capacity of over 1500 cc, and have ground clearance of 170 mm.
However, there is ambiguity whether a cess of 20% or 22% should be imposed on multi utility vehicles.
The GST Council also said in the statement that the sale of food and beverages in multiplexes should attract 5% tax and not 18%, to ensure uniformity in tax rates across Indian states.
The clarification was sought by industry bodies and multiplex operators who were being asked to charge 18% by some states. The GST Council, however, said movie tickets and food items bundled and sold will attract 18% tax.
Also Read
To manage disputes related to GST, appellate tribunals will be set up in phases. "Our effort and estimate is to make GST tribunal operational in 4-6 months," said Revenue Secretary Sanjay Malhotra at a press briefing.
The creation of GST Appellate will help in the resolution of a multitude of litigations pending under GST, said Abhishek Jain, a partner at KPMG.
The GST Council also decided to provide tax exemptions to satellite launch services provided by private companies.
It also decided to impose a 28% tax on funds that online gaming companies collect from their customers.
(Reporting by Nikunj Ohri and Sarita Singh; Editing by Chris Reese)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
