Free Press Journal

GST rates finalised: Here’s what you must know

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Food grains will cost less from July 1 when the nation-wide Goods and Service Tax (GST) is rolled out as the GST Council on Thursday decided to exempt the daily-use commodities from the levy. Common use products like hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 per cent instead of present 22-24 per cent tax incidence through a combination of central and state government levies.

The GST rates for all but six items were finalised at the first day of the two-day meeting here of the GST Council, headed by Union Finance Minister Arun Jaitley and comprising state representatives. Milk and curd will continue to be exempt from taxation when the Goods and Service Tax (GST) replaced current indirect taxes.

Goods and Services Tax bill is a taxation system, which will merge many individual taxes into one applied tax. The bill was introduced as Constitution Act 2016,  following the passage of Constitution 122nd Amendment bill. The GST is governed by GST council and it is headed by Union finance minister Arun Jaitley. GST has been touted as the single biggest tax reform in India and it will abolish the system of state imposed taxes and various other levies. The GST rates will vary from 5%, 12%, 18% and 28% depending upon the product.


Click on the link-GST rate schedule for goods: The complete list 

GST: What’s in it for you

  • 01

    Food Grains

     

    Foodgrains, cereals will cost less from July 1 when the GST is rolled out

  • 02

    Common use products

    Common use products like hair oil, soaps and toothpaste will be charged with a single sales tax or GST of 18% instead of existing 22-24%

  • 03

    Dairy products

    Milk and curd will continue to be exempt from taxation. ‘Mithai’ or sweets will attract 5% levy

  • 04

    Sugar, tea and edible oil

    Sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5%

  • 05

    Grains

    Prices of grains, especially wheat and rice, will dip as they will be exempt from GST

  • 06

    Jewellery and branded items

    Tax rate for gold, footwear, branded items will be announced today

  • 07

    Aerated products

    Aerated drinks and cars will be in 28% bracket. On top of the peak rate, small cars will attract a 1% cess, mid-sized cars 3% and luxury cars 15%

  • 08

    Gold products

    Gold coinOn gold, states demanded a 4% tax even though the rate is not among the 5, 12, 18 and 28% approved bands

  • 09

    Electronic products

    ACs and refrigerators will fall in the 28% tax slab life-saving drugs have been kept at 5%

  • 10

    Coal products

    Coal ScamCoal will attract GST of 5% as against the current tax of 11.69%