Image Source: GSTN Website
The GST (Goods and Services Tax) regime is all set to unify and simply the Indian taxation structure will be implemented from July 1, 2017. The Government has already announced the taxation rates on various categories. It is going to be a four tier taxation structure – 5, 12, 18 and 28 percent, with cess on a few items.
Though no consensus could be reached on the rate to apply on gold as well as beedi. UP CM Shri Yogi Aditynath has asked the Government to keep Puja items exempted of all taxes.
No Tax
Foodgrains, Milk, fruits, vegetables, fresh meat, eggs, butter milk, curd, natural honey, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles and handloom products.
5% GST
Sugar, tea, coffee, edible oil, coal, milk food for babies, condensed milk, packed paneer, newsprint, kerosene, LPG, broom, fish fillet, cream, frozen vegetables, spices, pizza bread, juice, sabudana, medicines, stent and lifeboat. Services like Ola cabs, Uber and transport comes in the slab.
Electricity Bills are likely to go down as coal will now attract 5% GST against the present rate of 11.69%.
12% GST
Butter, ghee, mobile phones, cashew, almonds, sausages, agarbatti, frozen meat products, animal fat, mixtures, ayurvedic medicines, tooth powder, colour books and sewing machine.
18% GST
Hair oil, soap, toothpaste, capital goods, industrial intermediaries, pasta, corn flakes, jams, soups, ice-cream, toilet paper, facial tissues, iron and steel, fountain pen, mineral water, Mobile phones, Tablets, camera, speaker, ice cream, envelops and instant food items. All other services that attract service tax.
28% GST
TV, Air conditioner, cars, cement, chewing gum, custard powder, pan masala, perfume, shampoo, make-up items, fireworks, motorcycles, paint, deodorant, shaving cream, hair dye, washing machine, vending machines, vacuum cleaner, hair clippers and dishwasher.
You can check out the ‘GST Impact on IT Sector’