GST LATEST NEWS FROM THE GST COUNCIL – FINAL GST RATES STRUCTURE IN INDIA

LATEST NEWS FROM THE GST COUNCIL – FINAL GST RATES STRUCTURE IN INDIA

LATEST NEWS FROM THE GST COUNCIL – FINAL GST RATES STRUCTURE IN INDIA

We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the latest news from the GST council, the tax structure for common-use goods are as under.

GST Rates Structure

Tax Rates

Products

5%

Edible oil, sugar, spices, tea, coffee (except instant)

Coal (instead of current 11.69%)

Mishti/Mithai (Indian Sweets)

Life-saving drugs

12%

Computers, Processed food

18%

Hair oil, toothpaste and soaps (currently at 28%)

Capital goods and industrial intermediaries (big boost to local industries)

28%

Small cars (+1% or 3% cess)

Consumer durables such as AC and fridge

Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)

High-end motorcycles (+15% cess)

Beedis are NOT included here

Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices. However, instant food has been kept outside this bracket so, no relief for Maggie lovers!

The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.

 

Coal to be taxed at 5 percent against current 11.69 per cent. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Expect a good run for Coal India tomorrow.

Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction. After all, Fair and Lovely might seem fairer in its pricing from now on!

The ‘mithai’ from the neighboring sweet shop might lose some of its flavor as Indian sweets will now be taxable at 5 per cent. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.

It is expected that more rates will be shared by end of day today. Prominently the rate of GST for various services will be discussed and finalized in today’s meeting some of the sneaks peek rates which we are able to retrieve are:

  • For restaurants serving alcohol, the tax bracket will be 18 per cent
  • Education, healthcare exempted from GST
  • Services on Non-AC restaurants will be 12 per cent

GST council has made the much-awaited announcements around tax rates on various categories of goods on day one of a two-day meeting of GST Council at Srinagar. There has been a hype around these rates for a while and now these rates are finally in public domain. 

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