The Goods and Services Tax (GST) Council on Saturday has raised the GST rates on mobile phones to 18 percent from 12 percent. Finance Minister Nirmala Sitharaman has decided to slash GST on maintenance repair overhaul (MRO) services for aircraft to 5 percent from 12 percent. On the other hand, the tax rate on handmade and machine-made matchsticks has been rationalized to 12 percent.
The GST Council has asked Infosys to deploy more skilled manpower, increase the capacity of hardware of GST Network to ensure that the system is glitch-free. The council has asked Infosys, which has designed the GSTN, to provide a better groomed GSTN system by July 2020, said Sitharaman.
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The Council has also decided to waive the late fee for delayed filing of annual returns for FY2018, FY2019 by entities with a turnover of less than Rs. 2 crores. The interest will be levied on net tax liability from July 1 for delayed GST payments. Moreover, it has deferred the proposal of a hike in rates on fertilizers, footwear, and textiles, sources due to the impact of coronavirus.