GST Live Update : GST Rates for remaining goods

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GST Live Update : GST Rates for remaining goods

Highlights of GST meeting held on 3rd June 2017

GST Live Update : GST Rates for remaining goods

The Goods and Services Tax Council today completed the task of bringing all items under the four-slab GST structure. At the council’s meeting, all states, barring West Bengal, agreed to roll out the new tax regime by July 1.

At the meeting, the GST Network (GSTN) made a detailed presentation on their IT preparedness for implemention of the new tax regime from July 1. “Members questioned the GSTN extensively on their level of preparedness and the GSTN expressed  full confidence for the work assigned.

  •  Deemed Credit in Transitional Provision for traders & retailers

 a) Goods which fall in tax bracket below 18%  – Deemed Credit Kept at 40%

b) Goods which fall in tax bracket of 18% and above- Deemed Credit kept at 60%

             Further Revenue Secretary Hasmukh Adhia said that for transition stock, the government will refund 100%of  excise duty for goods costing above Rs 25,000, if it  bears a brand name of the manufacturer & are serially numbered like TV, fridge or car chasis. On all those items, even if it is coming through the dealer, the manufacturer will give the credit transfer document to the distributor and the distributor will be able to take 100 % credit.

  •  GST Rates Announced Today

  1.  Gold, diamonds, gems & jewellery all will be taxed @  3% (costlier than before) whereas rough diamonds will be taxed @ 0.25%.
  2. Footwear costing upto Rs. 500will be taxed @ 5% whereas footwear costing  above Rs. 500 will be taxed @ 18%.
  3. Biscuits will be taxed @ 18% (flat rate)
  4. Packaged Food Sold under register trademark will be taxed @ 5%
  5.  Agricultural Machinery will be taxed between  5% to 12% depending on category.
  6. Biddi will be taxed @  28%  the highest rate ( unlike cigarettes no additional cess on biddis)
  7. Tendu leaves( biddi leaves) will be taxed @ 18%.
  8.  In textile category
  • Silk & jute – 0% (exempted)
  • Natural fibres including cotton  – 5%
  • Man made fibre(synthetic fibre) – 18%
  • Natural Yarn – 5%
  • Man made yarn( manufactured yarn) – 18%
  • Man made apparel (Readymade Garments) costing less than Rs. 1000 – 5%
  • Man made apparel (Readymade Garments) costing above Rs. 1000 – 12%

 

Compiled by   CA Ankita Khetan

 


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