May 18, 2017

GST Council approves 7 rules of GST; Council will discuss gold and beedi rates tomorrow

On day one of its crucial meeting in Srinagar, the Goods and Services Tax (GST) Council has decided on rates for all 1,211 items barring six. 81% items to be taxed at below 18% GST rate slabs, said Revenue Secretary Hasmukh Adhi

FM Arun Jaitley said the council approved seven rules of GST and that remaining two rules relating to transition and return are being vetted by a legal committee.

GST Council will tomorrow discuss rates on services and may meet one more time if tax for all items are not decided by then, he further added.

"Hope to finalise list of exempted items tomorrow and will also discuss rate of tax on gold and beedi," he said.

GST rate on coal fixed at 5% against current incidence of 11.69%; sugar, tea, coffee, edible oil to also attract 5% tax, said a. 60% items fall in 12-18% rate.

Hair oil, soap, tooth paste to attract 18% GST; cereals will be exempted from tax as opposed to current 5% rate.

Milk will be exempted from GST and food grains are set to be cheaper.

Tax incidence on cars will, however, remain the same. Either a tax rate of 28%, 1% and 3% will be applicable for all cars or a 15% cess will be levied on tax incidence.

A 3% cess will be levied on motorcycles above 350cc.

[The Business Standard]