As country Gears up for implementation of good and services tax cores of people in this country are expecting cheaper goods and commodities. In the crucial meeting held at Srinagar yesterday the GST council finalized the rates and new rate will be implemented from July 1.
Here’s a list of products that will become expensive and cheaper after the implementation of GST
- Small cars will be charged 1 percent cess on top of 28 percent tax
- Mid-sized and luxury cars will attract cess of 15 percent on top of the peak rate
- Aerated drinks have been put in the 28 percent bracket along with a cess of 12 percent
- Pizza bread, sevaiya, condensed milk, frozen vegetables will attract 5 percent levy
- GST on Coal has been brought down to 5 percent from the current tax incidence of 11.69 percent
- oil, soaps and toothpaste will be charged GST of 18 percent instead of present 22-24
- ACs and refrigerators will fall in the 28 percent tax slab
- Life-saving drugs have been kept at 5 percent
- All capital goods and all industrial intermediaries would attract 18 percent tax instead of 28 percent.
- ‘Mithai’ or sweets will attract 5 percent levy.
- Sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 percent
- Frozen meat will attract a GST of 12 percent
- Ayurvedic or homeopathy medicines, agarbatti, umbrella, electric vehicles and mobile phone manufacturing will be taxed at 12 percent
- Pastries and cakes, pasta, ice cream and soups, instant food mixes, betel nut, vinegar and sharbat will attract 18 percent tax
- 28 percent tax will be levied on chewing gum, chocolates, custard powder and waffles containing chocolate.
The GST Council still has a lot of work to do as rates of items like biscuits, footwear, gold, textiles, handloom handicraft, power-driven agricultural equipment are yet to be decided.
The GST Council discussed the tax rates for thousands of commodities which have to be grouped in seven categories of taxes – 0 per cent, 5 per cent, 12 per cent, 18 per cent, 28 per cent, special category and luxury items category.
Currently 299 items are on the exempt list from taxes at the central level and 99 in states. While the states demanded that several items of daily use in their region should be add to the free-from-taxes category the centre wanted to keep the list restricted to 100-odd items.