By TIOL News Service

NEW DELHI, JUNE 12, 2017: AT its 16th meeting the GST Council has granted major relief to 66 commodities out of representations received for 133 items. Aggrieved manufacturers and service providers had flooded the Union Finance Minister and State Ministers' offices with representations and pleaded for a review. And having looked into their concerns, the Council approved reduction in rates for many items such as packaged foods like pickle and sauces; school bags, cutlery, ball bearings and computer printers.

While addressing the media Mr Jaitley said that in some cases the Council even went beyond the existing burden of taxes. But, he also hinted that the Council may not grant any relief to hybrid cars which fall in the highest bracket with 15% Cess.

Taking note of the small businesses and the inputs received from various States, the Council approved a 50% hike in the limit of the Composition Scheme. The annual turnover limit has now become Rs 75 lakhs from Rs 50 lakhs. And the tax rates are 1%, 2% and 5% for traders, manufacturers and restaurant owners respectively.

Introducing two-tax rate system even in case of Services, the council has approved lower rate of 18% tax rate for cinema tickets costing less than Rs 100 and 28% for above Rs 100. The Council also approved the Accounts & Records Rules and with detailed formats.

The Council is going to meet again on June 18 and may approve the long-pending E-Way Bill rules and the proposed tax on lottery.