Finally we have come to know what items will be taxed at what rate.
Earlier we just knew that Goods and Service Tax (GST) is going to be rolled out from 1st July 2017 and that there will be a four-tier tax rate structure i.e., 5, 12, 18 and 28 % Tax in GST.
On May 18, when the GST Council, headed by Union Finance Minister Arun Jaitley met in Srinagar, they fixed the tax rates for all the 1211 items except for six items which will be finalised today.
GST rates for certain goods like textile, footwear, biris, precious metals, etc. are yet to be decided by the GST Council. These rates will be finalized today.
I am sure you all are eager to know what items will be taxed at what rates.
Quick Guide to GST Rate Card :
Nil GST Rate (0%) Items :
No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom etc.
5% GST Rate Items :
Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 percent.
12% GST Rate Items :
Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, and cellphones will be under 12 per cent tax slab.
18% GST Rate Items :
Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.
28% GST Rate Items :
Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, 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, and yachts will attract 28 per cent tax – the highest under GST System.
Apart from that, the council also decided GST Compensation Cess Rates for different supplies.
For the purpose of providing compensation to the States for loss of revenue arising on account of implementation of the GST for a period of 5 years, GST Compensation Cess will be levied and collected by Central Government on certain items above the GST Rate.