Zee Media Bureau
New Delhi: A 4-tier GST tax structure of 5, 12, 18 and 28 percent, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess, was decided by the all- powerful GST Council.
Check out which items will get cheaper and which will get dearer.
- While the tax incidence on goods will come down, those on services will go up.
- With a view to keeping inflation under check, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.
- White goods, cars and other items that are currently taxed at 30-31 percent will be taxed at 28 percent.
- To lower the inflationary impact of GST, a number of items such as soap, oil, shaving stick, toothpaste and such products that are currently taxed at 30 percent will be moved under the 18 percent slab.
- Luxury cars, tobacco products, pan masala and aerated drinks will be taxed at 28 percent and also attract a cess to take the total tax incidence to the current rate.
-With regard to taxation of gold, presently the Centre and states together collect indirect taxes to the tune of Rs 8.5 lakh crore. After taking into account the revenue mobilisation in the new tax regime, the gap will be filled with a tax on gold.
The final list of items for each tax bracket under GST will be worked out by a committee.