New Delhi/Nagpur: The rates of Goods and Services Tax (GST) for major consumption products were announced, following the GST council meeting chaired by Finance Minister Arun Jaitley in Srinagar.
Milk and cereals have been exempted from GST, both being products of mass consumption. Coal would attract a GST of 5 per cent, as compared to the existing tax rate of 11.69 per cent. Meanwhile, tooth paste, soap and hair oil would be charged at 18 per cent.
Here are 10 updates:
- Nearly 81 per cent of products under the GST would be charged below the 18 per cent bracket, said Revenue Secretary Hasmukh Adhia. Only 19 per cent of goods would be charged above 19 per cent, he added.
- The decision was taken at today’s GST Council meeting, where tax slabs were discussed. Finance Minister said the Council meeting could be held again if rates of certain products remain a matter of contention.
- At the meeting held today, the tax rate of nearly 1,205 items were finalised. There were 6 products on which the Council members could not arrive at consensus to fix the taxation rate, as per reports.
- Milk, a product of wide consumption, has been exempted from taxation under the GST.
- Cereals, which are currently charged at 5 per cent, would not be taxed under GST. However, the government is yet to decide the GST rate for branded cereals.
- GST rate of food grains is yet to be finalised, reported NDTV. However, the tax rate would be kept low for domestic food grains (below 5% slab) and higher for the exported products.
- Soap, hair oil and toothpaste would be charged at 18 per cent of GST. Sugar, Tea, Coffee and edible oil to fall under 5 per cent slab, as per reports. The GST rate on coal has been fixed at 5 per cent, down from 11.69 per cent of tax currently charged.
- Centre has also sought a list from respective states of list of products which they want to be charged at 0 per cent tax rates. Uttar Pradesh government have reportedly demanded ‘puja materials’ to be exempted.
- Under the incumbent indirect tax regime, nearly 400 items are exempt from excise and VAT. Government has decided to exempt only 7 per cent out of the list under the GST structure. This would significantly bring down the list of ‘zero tax’ products.