The GST Council has finalised a rate structure of 28 per cent for truck and buses. It is the same as cars, motorcycles, mopeds, personal aircraft and luxury yachts claimed an industry expert. According to an industry source, that smaller buses and vans with a capacity to seat 10 to 13 people will attract 15 per cent cess besides 28 per cent tax. Opining that GST for CVs will be neutral, the source drew attention to three wheelers, which are expected to witness a marginal increase in prices due to the additional National Calamity Contingent Duty (NCCD) levied. Against the current 27.5 per cent (Excise Duty and VAT) tax structure, that the tyres attract under GST they will attract 28 per cent duty, an increase of 0.5 per cent. ICRA in its report has mentioned that the overall tax incidence for the industry will remain neutral. Said Subrata Ray, Senior Group Vice President, ICRA, that the total tax incidence relating to inputs is estimated to increase since GST rate for input components is fixed at 28 per cent, higher than the current taxation structure. However, the manufacturer can claim input at credit. The fixation of GST rate of 12 per cent on tractors would allow OEMs to take credit of the cumulative input duties and taxes. Total tax incidence would thus remain at similar levels, and its implementation for the tractor industry would be neutral. Feared an industry expert that any benefit that the GST may offer will be lost to countervaling duties levied by respective state governments in their pursuit for revenue. He cited the example of Maharashtra, which has levied, not once but twice, countervaling duties on petrol. Countervaling duties may never be reduced or abolished he said, and instead increased over time in one form or the other.