With an aim to protect the domestic industry, the Central Board of Indirect Taxes and Custom (CBIC) has said it would look into suggestions of hiking import duty on consumer durable items after the peak goods and services tax (GST) rate on a number of consumer durables was cut. The suggestions came in following the GST Council recently decided to lower tax rates on 17 categories of white goods, including smaller TV, fridge and washing machines. Rates have been lowered to 18% from 28%.
An imported item attracts customs duty as well as counter veiling duty (CVD) which is equal to GST. Since GST rates have come down, the imported items will also attract lower CVD and thus gap between domestic and imported good will reduce.
Besides, CBIC Chairman, S Ramesh stated the GST council cut rates on a host of items, which was decided on the basis on revenue neutrality and reduction of additional burden on taxpayers. Moreover, he underlined ‘the domestic industry has said it needs protection. We are looking into all the proposals that have come in’.
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