Mumbai: The Goods and Services Tax (GST) Council is set to discuss a recommendation to levy a 22 per cent cess on certain types of Multi Utility Vehicles (MUVs). The next meeting of the Council is to be held on 11 July. There is also discussion on reducing the GST rate on some items.
The Fitment Committee has recommended that all multi-utility vehicles with a length of more than 4 metres, engine capacity of more than 1500 cc and ground clearance of 170 mm should be brought under the 22 per cent cess bracket. All types of SUVs and multi-utility vehicles are subject to 28 per cent GST.
In the council meeting held on 22 September 2017, it was decided to impose 22 per cent compensation cess on sports utility vehicles.
Council sources said that the inclusion of RBL Bank in the list of integrated GST exemptions on import of gold, silver and platinum is going to be discussed in the council meeting on July 11.
Medicines and food used in certain types of medical treatment will also be exempt from GST. Apart from this, GST on Papad which is currently 18% will also be considered to be reduced to 5%.
Clarity is expected on Compensation Cess on Panmasala, Chewing Tobacco etc. Sources said the council is also expected to discuss the changes resulting from the new foreign trade policy that will come into effect from April 1.
