The decision was taken at a meeting of GST Council chaired by Sitharaman.
The Goods and Services Tax (GST) on mobile phones and specific parts have been increased to 18% from the current rate of 12%, Union Finance Minister Nirmala Sitharaman on Saturday said.
The decision was taken at a meeting of GST Council chaired by Sitharaman.
"It was decided to raise the GST rate on mobile phones and specific parts, presently attracting 12% GST, to be taxed at 18%," the Finance Minister said after the meeting of the GST Council.
The council also decided to rationalise GST rate on matchsticks by bringing a uniform tax rate of 12% on both hand-made and machine-made products.
Besides Sitharaman, the meeting was also attended by Union Minister of State for Finance Anurag Thakur and finance ministers of states & UTs and seniors officers of the Ministry of Finance.
Here is the GST Council decisions relating to changes in GST rates:
1- GST rate on Mobile Phones and specified parts to be raised from the current 12% to 18%.
2- GST rate on all types of matches (Handmade and other than Handmade) has been rationalised to 12% (from 5% on Handmade matches and 18% on other matches). This would address the classification issues.
3- To reduce GST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC and to change the place of supply for B2B MRO services to the location of recipient. This change is likely to assist in setting up of MRO services in India. Domestic MRO will also get protection due to 5% tax paid under section 3(7) of the Customs Tariff Act, 1975 on most imported goods (sent abroad for repairs) as this tax is not available as credit.
The notifications regarding the GST Council recommendations are likely to be issued on April 1, 2020.
The Finance Ministry has also extended the deadline for filing the GST9R and GSTR9C for the financial year 2018- 19 to June 30, 2020.
"Late fees not to be levied for the delayed filing of the annual return & reconciliation statement for 2017-18 & 2018-19 for taxpayers with aggregate turnover less than Rs 2 crore," Sitharaman said.
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 "A meeting of GST Council chaired by Sitharaman was held on Saturday")
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