With the conclusion of the first day of the 14th round of the GST Council’s meet, GST is heading closer to timely implementation across the country. At least five state finance ministers Mint spoke to confirmed the July 1 date, a significant step ahead after several missed deadlines for the countrywide roll out of the GST.
The Council’s approval to over seven draft GST rules and fitment of over 1,211 commodities (with an exclusion of six items) in various tax slabs takes GST framework towards finality. With these announcements, India Inc now has sufficient information to realign its reporting systems and existing processes in line with GST requirements.
With an aim to keep most items, especially those of mass consumption, at affordable prices, the states and the Centre evolved a consensus on the first day of the 14th Goods and Services Tax (GST) Council meeting on Thursday to keep 81 per cent of a total of 1,211 items at the modal tax rate of 18 per cent or below.
Revenue Secretary Hasmukh Adhia said that about 7 per cent of the total 1,211 items have been exempted, 14 per cent of the items are in the 5 per cent tax slab, 17 per cent of total items are in 12 per cent tax slab. About 43 per cent of items will attract 18 per cent tax rate, while only 19 per cent will be in the 28 per cent tax slab
“There is no increase in overall tax in any of the items, while there is a reduction of tax on many of the items, on several commodities, we consciously brought down the tax rate.”
Arun Jaitley, Finance Minister
Quick GST rate Guide
No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Si door, stamps, judicial papers, printed books, newspapers, bangles, handloom etc.
Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, ..
Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, and cellphones will be under 12 per cent tax slab.
Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.
Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, and yachts will attract 28 per cent tax – the highest under GST
*Pending GST Rate Items
1. Biri wrapper leaves (tendu patta) – Ch. 14
2. Biscuits – Ch.19
3. Biris – Ch. 24
4. Textiles – Ch. 50 to 63
5. Footwear – Ch. 64
6. Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin – Ch. 71
7. Power driven Agricultural, horticultural, forestry, poultry keeping or bee-keeping machinery, Harvesting or threshing machinery, machines for cleaning, sorting or grading, machinery used in milling industry and parts thereof