GST Council on Saturday announced a hike in the tax rate on mobile phones and specified parts to 18 per cent from the next month, from the existing 12 per cent, to correct the inverted duty structure. 

It, however, deferred the decision on hiking rates on three other items — footwear, textiles, and fertilisers — which was recommended by the fitment committee of officers to correct the system of having higher duties on inputs than on the final products.

“If there is a need to calibrate the rates on these items, we will take up the issue in one of the future meetings,” Finance Minister Nirmala Sitharaman, who chaired the meeting, told reporters.
Bengal Finance Minister Amit Mitra, who had urged the Council to not hike the rates on these items, said, “Timing is the key. When you have the coronavirus issue and growth slowdown, what sense does it make in hiking the GST rates on items like these?”
Responding to a query whether prices of mobile phones would rise after this decision, Finance Secretary A B Pandey said the move was aimed at correcting the inverted duty structure, which was blocking refunds of companies. “I don't believe that prices would rise by 6 per cent,” he said. 

The Council, meanwhile, reduced the GST rate on maintenance, repair and overhaul services of aircraft to 5 per cent from 18 per cent. This would help in setting up these facilities in India, Sitharaman said. 

It also brought parity in handmade and machine-made matchsticks by imposing a GST rate of 12 per cent on them. 

At present, hand-made stick box attracts 5 per cent GST and machine-made 18 per cent.