Srinagar: After the implementation of commodity and service tax (GST) from July 1, ordinary consumer goods, like hair oil, soap and toothpaste, will become cheap and electricity rates will also fall. GST Council has decided to keep grain out of the GST today (on Thursday). On the first day of this two-day council meeting, the tax rate on all other items except for six things has been fixed at 5, 12, 18 and 28 percent.
Taxes on consumer goods will seem less
According to the decision taken in the ongoing meeting of the GST Council, 18 percent GST or single national sales tax rate will be applicable on products consumed like kerosene, soap and toothpaste. At present these products are 22-24 percent tax in total.
– Bottled drink will be taxed at 28 percent
– Tax rates for bidi, gold, footwear and branded products will be decided tomorrow (on Friday)
– The rate of tax on coal will be five percent, while at present it is taxed at 11.69 percent. This will make power production cheaper.
– Taxes of 28 percent on AC and refrigerators
– Life saving drugs are placed in the tax slab of 5 percent
– Tax rate for all capital goods will be 18 percent, which is now 28 percent
– Milk and yogurt will continue to be exempted from taxation while sweets will cost five per cent.
– Daily consumption of commodities like sugar, tea, coffee (besides instant plenty) and edible oils will be the lowest tax rate of five percent, which is almost at the current level.
– After the implementation of GST, prices of grains, especially wheat and rice, will come down as they have been exempted from GST. At present, some states impose Value Added Tax on them.
With tax rates increased by 15 percent cess
– On the small cars, the cess of one per cent will be calculated with the upper rate of 28 percent.
– Three percent cess on medium sized cars
– Luxury car of 15 percent cess.
Finance Minister Arun Jaitley told reporters, “We have finalized the tax rates and exemption list for most commodities (in today’s meeting).” He said that on the first day of the meeting only six out of 1211 GST rates were decided for. The Council will fix the tax rate for gold, footwear, branded items and bidi on Friday (Friday). He said, “The rates for the rest have been finalized.” The GST is yet to be decided for packaged food items. He said that the tax rate on services will also be decided in the meeting tomorrow (Friday).
Jaitley said there will be no inflationary pressure because most of the scope of 31 percent of the scope has been brought down to 28 percent. They said, “Grains will be on the discount list. But there is a different decision about packaged and branded food products. Jaitley said that the main feature in today’s decision about the rates is that under the GST, tax rates for any commodity will not increase. There will be no increase in any kind. For many commodities, there will be only partial reduction in it. ‘
Revenue Secretary Hasmukh Adhia said that seven percent of the items have been placed in the exemption list while 14 percent of the items have been kept in the lowest rate of five percent. At the same time, 17 percent of the items are covered under the 12 percent tax, 43 percent for goods by 18 percent, while 19 percent items are kept in the highest tax on 28 percent.
