Hours before the implementation of the Goods and Services Tax (GST), the GST Council on Friday reduced the tax of fertilisers from 12 per cent to 5 per cent, reported news agency PTI. Finance Minister Arun Jaitley, who chaired the meet, said the decision was taken over apprehensions that the price of crop nutrient may increase. The 18th GST Council meeting, held at Vigyan Bhavan, was attended by representatives of states.
Another decision that was taken during the meeting, which also bring relief to farmers, was to reduce the tax rate on exclusive parts of tractors from 28 per cent to 18 per cent. “Some felt it (12 per cent GST rate) may be a burden on consumer. There was a consensus (in the GST Council) to bring rate to 5 per cent,” Jaitley said.
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While issues relating to farmers were discussed, the meeting was originally called just to thank the council members for helping in the implementation of GST. There was no formal agenda for the council. The next three sessions of the GST Council will be held on the first Saturdays of the months starting from August.
Since the first meeting of the Council on September 23 last year, there have been 18 sessions on a range of issues including supporting legislations, GST rules, rates of taxes and managing more than 1200 goods and services in the four-tire structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent.
Read: 80 per cent items within 18 per cent bracket; to benefit ‘honest taxpayer’, says Revenue Secy. Click here.
(With inputs from PTI)