Goods and service tax or GST will replace a string of state and central taxes from July 1.
Story Highlights:New Delhi: Goods and service tax or GST will bring good news for crores of people in the country. In an important meeting, in Gurgaon, the GST Council has finalized the rates of tax on all kicks which will be considered from July 1. Staples like pulses and rice will be cheaper. Along with both these, foodgrains has been added to the exempt list, which means that there will be no GST on these items. So far, both Staples have been applied with taxes in different states between 1 to 5 percent. Milk has been added to the exempt category, though tax on states like UP has not taxed milk from earlier days.
After implementation of GST, consumer durable companies will also get a price reduction. Due to the plurality of taxes, items like air conditioners used to invite 32 percent or more taxes. Now they have been put into 28 percent slab which means that the area, which is struggling against sales figures, can expect a major change.
But for those wanting to buy a car, there is nothing. Car will not get cheaper due to GST. Cars attract three categories of 1, 3 and 15 percent cess. High-end motorcycles will have a cess of 3 percent with 28 percent GST rate. On the first day of the meeting in GST Council, for first 55 items CESS will be invited.
There is still a lot of work for GST Council because the prices of items like biscuits, footwear, gold, textiles, handloom handicrafts, electric powered agricultural equipment are yet to be decided.
The GST Council discussed the rate of tax for thousands of items, for which to be grouped in the categories of 0%, 5%, 12%, 18%, 28%, Special Category and Luxury goods in seven categories of taxes.
At present, 299 items are on exemption list from taxes on central level and 99 are in the states. While the states demanded that many items of daily use should be added to the no tax category in their area, but center instructed to keep the list limited to 100 odd items only.
After few hours of discussions, Revenue Secretary Hasmukh Adhia announced toothpaste, soap, hair oil would be cheaper after GST.
Due to GST, many central and state levels will have an impact, many other daily uses like toothpaste, hair oil and soap will be attracted from 28 percent tax compared to 18 percent GST.
Milk will be exempted from GST; The grains will be cheap, hair oil, soap, tooth paste will be applied with 18% GST. Sugar, tea, coffee, edible oil will also be applied with 5% tax.
Addressing a press conference, Finance Minister Arun Jaitley said, “GST is an efficient system of taxation and it will help in the prevention of tax evasion by the inherent efficiency.”