Today, it’s a second day of GST council meeting which is going on in Srinagar. Most of the services would be charged at the rate of 18 per cent under Goods and Services tax from July 1.
Finance Minister Arun Jaitley informed that they have not hiked the present tax rates in more segments. Arun Jaitley said,
“GST besides being a more efficient tax is also going to be consumer friendly,”
There are 5 different tax rates slabs: 0 Per cent, 5 Per cent, 12 per cent, 18 per cent and 28 per cent. Now the council will hold next meeting on 3rd June 2017.
On July 1, 2017 Government will roll out GST so from July 1, all prices of items will change. There are 7 per cent of the items which fall under the exempt list. While 14 per cent have been put in the lowest tax bracket of 5 per cent.
Almost 81 per cent items will get 18 per cent or less GST Rate. Now here check out all the 5 GST rates slabs…
No GST (0 Per cent Tax):
All Foodgrains, milk, milk products, and other daily use products will not attract any tax under the GST regime.
foodgrains, gur, milk, eggs, curd, lassi, unpacked paneer, natural honey, fresh vegetables, fruits, atta, besan, maida, vegetable oil, Prasad, common salt, contraceptive, bread, bindi, vermillion, stamp, judicial documents, printed books, bangles and handloom products, etc.
5 Per cent GST:
The next slab is of 5 per cent tax. As all daily needs products are having no taxation, some basic necessity products will be applicable for 5 per cent tax under the GST.
The list includes
sugar, tea, coffee, edible oil, coal, skimmed milk powder, milk food for babies, condensed milk, packed paneer, newsprint, umbrella, PDS kerosene, LPG, broom, fish fillet, cream, frozen vegetables, spices, pizza bread, juice, sabudana, coal, medicines, stent and lifeboat.
12 Per Cent Slab:
Essential items that are used more in households and people will be under 12 per cent taxation slab.
GST Slab with 12 Per cent tax list includes
butter, ghee, mobile phones, cashew, almonds, sausages, fruit juices, packed coconut water, agarbatti, frozen meat products, animal fat, mixtures, ayurvedic medicines, tooth powder, colour books and sewing machine.
18 Per Cent Slab:
Now the items for which we need to pay 18 per cent GST includes
hair oil, soap, toothpaste, capital goods, industrial intermediaries, pasta, corn flakes, jams, soups, ice-cream, toilet paper, facial tissues, iron and steel, fountain pen, mineral water, camera, speaker, envelops and instant food items.
28 Per Cent Slab:
Luxury goods will attract 28 per cent GST from 1st July. The list includes
consumer durables, cars, cement, chewing gum, custard powder, pan masala, perfume, shampoo, make-up items, fireworks, motorcycles, paint, deodorant, shaving cream, hair dye, washing machine, vending machines, vacuum cleaner, hair clippers and dish washer.
Things that becomes Cheaper after GST:
From July 1, Food grains, cereals, milk will become cheaper. Currently many states are charging VAT on all these products. However, Sweets will have 5 per cent GST but still it will become cheaper.
Hair oil, soaps, toothpaste will have 18 per cent GST instead of current 22 to 24 per cent taxation.
Daily use items like Sugar, Tea, coffee, edible oil will have 5 per cent ta.
ACs, Refrigerators that are having 31-32 per cent tax currently, will fall under 28 per cent tax slab.
Things That becomes Costly After GST:
Cars, cold drinks will fall in 28 per cent slab. Small cars will have 1 per cent cess, mid-sized cars will have 3 per cnet and luxury cars will have 15 per cent.
Pan Masala and branded gutka will have 28 per cent GST and also add 204 per cent cess. While other pan masalas will have 60 per cent cess.
Tobacco will have 71 to 204 per cent variation for cess along with 28 per cent tax.
Filtered and non-filtered cigarettes of 65 mm will have 5 per cent cess plus Rs 1591 per 1000 sticks. While non-filtered cigarettes of 65-70 mm will have 5% cess and Rs 2876 per 1000 sticks.
Smoking mixtures for pipes and cigarettes will fall under 290 per cent cess.
Large cars with engine greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15 per cent.
Motorcycles with engine of more than 350 cc will attract 3 per cent cess and an equal amount of levy will be applying to aircrafts for personal use and yachts.
On gold, states demanded a 4 per cent tax even though the rate is not among the 5, 12, 18 and 28 per cent approved bands.
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