The Goods and Services Tax (GST) regime is going full steam and it is likely to be implemented soon. Another milestone of finalizing the slabs has been completed. The GST council finalized tax rates for 1,211 items. Most of the items would be under 18 percent rates. However, some would be charged at 28 percent which is the highest slab of GST.
The GST council has approved seven GST rules while the legal committee is going to finalize the remaining two rules. These would be about return and transition.The meeting was held in Srinagar and focused mainly on fitment of goods under slabs. Almost 81 percent of the items are going to fall under below 18 per cent GST rate slabs and only 19 per cent of the goods will be taxed at 18 percent.
The meeting was held in Srinagar and focused mainly on fitment of goods under slabs. Almost 81 percent of the items are going to fall under below 18 per cent GST rate slabs and only 19 per cent of the goods will be taxed at 18 percent.
There is going to be a big relief for tea and coffee drinkers as sugar, tea and coffee and edible oil would fall under five percent slab while cereals, milk are on the exemption list.
In a major relief to the industry, the council has set the rate of capital goods, industrial intermediates items at 18 per cent.
The coal would be cheaper as it has been moved to 5 per cent against the present 11.69 per cent. There is a relief for the households as well: toothpaste, hair oil; soaps will be taxed at 18 percent against the present rate of 28 percent.Most of the items that are used by the common man have been moved to 12 percent and 18 percent list. The people with a sweet tooth have good news too as the Indian sweets or mithai would be taxed at 5 percent. So far no decision has been taken about the services
Most of the items that are used by the common man have been moved to 12 percent and 18 percent list. The people with a sweet tooth have good news too as the Indian sweets or mithai would be taxed at 5 percent. So far no decision has been taken about the services tax for the auto sector.
The council also discussed the items on zero tax list. Most of the states have been trying to put the items that are of mass consumption in their territory on this list. Exemption of the essential services is also to be discussed. Raw food items including foodgrains are exempt from GST only processed food would attract 5 percent tax.
To give relief to the common man eatables, veg, and non-veg, like fresh meat, fish, chicken, eggs, milk, buttermilk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread & salt would not be taxed in GST regime. Apart from this bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc. have also been exempted under the new tax regime. Though services are yet to be decided but so far hotels and lodges with tariff below Rs 1000 are exempted under GST.
5% tax would be applicable on the items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, Sabu dana, kerosene, coal, medicines, stent, and lifeboats.
However, some items would be charged exorbitantly by the GST tax regime.
The following items would be charged at the rate of 28%: Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use. Apart from this 5-star hotels, race club betting, the cinema will attract tax 28 per cent tax slab under GST.
It is estimated that the inflation will fall by 2 per cent after the implementation of GST.