New Delhi – The GST panel has now put their focus on the large vehicles. The central now would review the structure of tax which had been paid for the large vehicles. The central sales tax on petrol would be discussed as well.

The council meeting is set to take place on Saturday. They would discuss the matter of leased vehicles as well. The levy has gone up to 43% which earlier had been 12.5% to 13% VAT. As a result of this increase in the tax, the monthly rate for Toyota has now become ₹ 10,000 approximately. This would eventually affect the drivers who drive Ola or leased cars.

A senior officer admits that the decision might not be too easy to take as there are too many complexities which need to be resolved first. The council has decided to grant a 15% compensation to the leased vehicle drivers. Such a decision has resulted in a fall of SUV price while the cost of hybrid cars goes up.

The current situation has led to a review meeting, by the states, which is being conducted by Tamil Nadu. Karnataka is not far behind in raising their concern over such a decision either. The hybrid car levy has been dismissed earlier. However, now that the rates have been fixed it is time for a review.

Some of the states are expressing their concern over the GST rate on handicraft and handloom items. They argue that the 18% that the centre is charging for the items is way too high. The textile department has become a major concern for the states. The traders are protesting now against the imposition of taxes.

A troubling point is sticking to CST on the petrol and gas. The central government, however, is supporting CST. However, they admit that some errors are there in the structure. The states have accused that the center is unwilling to take the hit that it is imposing on everyone else.