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GST Council finalises rates: Here`s what will become expensive and what will become cheaper
Here`s a list of products that will become expensive and products that will get cheaper after the implementation of GST.
New Delhi: The Goods and Services Tax (GST) Council, comprising state finance ministers and headed by Union Finance Minister Arun Jaitley, has finalised the rates on a host of items.
Making further progress on rolling out the GST by July 1, the Council decided the tax rates for 1,211 items, a majority kept at 18 percent.
Meat, fresh vegetables, honey, jaggery, prasadam, kumkum, bindi, pappad and contraceptives have been exempt from GST levy.
Here's a list of products that will become expensive and cheaper after the implementation of GST
- Small cars will be charged 1 percent cess on top of 28 percent tax
- Mid-sized and luxury cars will attract cess of 15 percent on top of the peak rate
- Aerated drinks have been put in the 28 percent bracket along with a cess of 12 percent
- Pizza bread, sevaiya, condensed milk, frozen vegetables will attract 5 percent levy
- GST on Coal has been brought down to 5 percent from the current tax incidence of 11.69 percent
- oil, soaps and toothpaste will be charged GST of 18 percent instead of present 22-24
- ACs and refrigerators will fall in the 28 percent tax slab
- Life-saving drugs have been kept at 5 percent
- All capital goods and all industrial intermediaries would attract 18 percent tax instead of 28 percent.
- 'Mithai' or sweets will attract 5 percent levy.
- Sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 percent
- Frozen meat will attract a GST of 12 percent
- Ayurvedic or homeopathy medicines, agarbatti, umbrella, electric vehicles and mobile phone manufacturing will be taxed at 12 percent
- Pastries and cakes, pasta, ice cream and soups, instant food mixes, betel nut, vinegar and sharbat will attract 18 percent tax
- 28 percent tax will be levied on chewing gum, chocolates, custard powder and waffles containing chocolate.