GST: 81% items to be taxed below 18% rate: Government

GST: 81% items to be taxed below 18% rate: Government The Goods and Services Council today decidedtax rates for 1,211 items with a majority of items being kept at under 18 per cent rates. "There is no increase in taxes of the items considered today. In fact, for many of them, taxes have come down," Finance Minister Arun Jaitley told media after the first day of the GST Council meet. Briefing the media after the meeting in Srinagar, Jaitley said, today's meet was focused mainly on fitment of goods under slabs. GST Council may meet again if final rates not decided tomorrow. Clearing air over the GST rate slabs, Revenue Secratery Hasmukh Adhia said: "Nearly 81 per cent of the items will fall under below-18 per cent GST rate slabs and only 19 per cent of the goods will be taxed above 18 per cent."

• Sugar, Tea, Coffee (except Instant) and edible oil to fall under 5 per cent slab, while cereals, milk to be part of exempt list under GST.
• In a big boost to industry, Council has set the rate for capital good, industrial intermediate items at 18 per cent.
• Coal to be taxed at 5 per cent against current 11.69 per cent.
• Tooth paste, hair oil, soaps will be taxed at 18 per cent, it is being tax at 28 per cent, currently.
• Common man items have gone into 12 per cent and 18 per cent slab.
• Council will discuss the rate slab for important goods like gold and beedi rates tomorrow. No decision has been taken on Services tax rates and rates over auto sector.
• Indians sweets or mithai in 5 per cent slab.
• Foodgrains, cereals, milk to be cheaper under GST
• Foodgrains, cereals and milk will cost less from July 1 when the Goods and Services Tax (GST) is rolled out as the GST Council today decided to exempt these daily-use commodities from the levy.
• Common use products like hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 per cent instead of present 22-24 per cent tax incidence through a combination of central and state government levies.
• The GST rates for all but six items were finalised at the first day of the two-day meeting here of the GST Council, headed by Union Finance Minister Arun Jaitley and comprising state representatives.
• Milk and curd will continue to be exempt from taxation when the Goods and Service Tax (GST) replaced current indirect taxes. 'Mithai' or sweets will attract 5 per cent levy.
• Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 per cent, almost the same as current incidence.
• Prices of foodgrains, especially wheat and rice, will come down as they will be exempt from GST. Currently, some states levy Value Added Tax (VAT) on them.

"We have finalised tax rates for majority of items as well as the exempt list (at today's meeting)," Jaitley told reporters here. The GST rate for all but six out of the 1,211 items was decided on the first day, he said, adding the tax rate for items that would be decided tomorrow include gold, footwear, branded items and bidi. Tomorrow's meeting will also decide on the rate of tax for services, he said.

Download chapter-wise-rate-wise-gst-schedule-18.05.2017

 

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