Mumbai: The GST Council, headed by Union Finance Minister Nirmala Sitharaman and having representatives of all states, did not take a decision on cutting tax on automobiles as well as items like biscuits which had seen fall in sales on slowing consumption and demand.
However, passenger vehicles of engine capacity 1,500 cc in case of diesel, 1,200 cc in case of petrol and length not exceeding 4,000 mm designed for carrying up to 9 persons attract compensation cess of 1% for petrol and 3% for diesel vehicle over and above the 28% tax rate.
Council recommended same compensation cess rate for vehicles having these specifications (length and engine capacity) but designed for carrying more than 10 persons but up to 13 persons, she said adding presently these vehicles attract compensation cess at the rate of 15%.
In all, the GST Council revised rates on 20 goods and 12 services. Sources said the changes will have "very minor" revenue implication as an increase in tax would make up for reductions.
The Council cut the GST rate on slide fasteners (zips) to 12% from 18% on marine fuel to 5% from 18%.
