GST Council Increases Tax Rates on Car Seats

By A Staff Reporter

Delhi: Following the recent GST Council meeting, Revenue Secretary Sanjay Malhotra provided updates on key tax decisions. Effective immediately, the tax rate on car seats will be increased from 18% to 28%. This change is aimed at aligning the taxation structure with the broader tax framework for similar products.

Additionally, Malhotra clarified that roof-mounted package units and air conditioning machines used in railways will attract a GST rate of 28%. This move is intended to provide clearer guidance on the tax treatment of these items.

In a new development, the GST rate for transporting passengers by helicopter on a seat-sharing basis will be set at 5%. This rate aligns with the tax structure for air travel, making it more accessible and standardized.

For economy class construction services, it has been decided that PLC (preferential location charges) or any additional charges paid alongside the primary construction consideration will be considered part of the composite supply of construction services. This means these charges will be subject to the same tax rate as the overall construction services.

These updates reflect ongoing efforts by the GST Council to refine and streamline tax policies, ensuring clarity and consistency across various sectors.