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.
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