Friday, Nov-17-2017, 10.57PM

GST Council Decides Tax Rates For 1,211 Items, Except Gold GST Council Decides Tax Rates For 1,211 Items, Except Gold

May-19-2017 | 0 Comments

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Srinagar: The Goods and Services Tax (GST) Council on Thursday decided the tax rates for 1,211 items, a majority kept at 18 percent, though the rates on gold and beedi remained undecided.



"There is no increase in taxes of the items considered today. In fact, for many of them, taxes have come down," Finance Minister Arun Jaitley told the media in srinagar after the first day of the GST Council meet.



Revenue Secretary Hasmukh Adhia said that an overwhelming 81 percent of items will attract tax of 18 percent or below. Only 19 percent of items will be taxed at the highest rate of 28 per cent, he said.


The fitment of only six categories of goods remain to be decided, including gold, beedi and cars.



The Finance Minister said food items, including cereals, will become cheaper as they have been kept under the exempt category to which milk is also proposed to be added.



However, the fitment of packed and branded food is yet to be decided.


Jaitley said the rates on the remaining items will be decided in the Council's meeting on Friday.


ALSOI READ: GST May Replace 15 Indirect Taxes from July 1. Here's How


"The Counicl may meet again if final rates are not decided on Friday."



Jaitley said that while the overall basket of taxes will see a reduction, he hoped for greater tax buoyancy because of greater efficiency and less tax evasion.



"In the overall basket there will be a reduction... but because of greater efficiency and less tax evasion there will be revenue buoyancy and tax collection will go up," he said.


Around 400 items are currently exempt from excise and VAT under the existing indirect tax regime.



With the government announcing that 7 percent of items will remain under the exempt category, the number of items which enjoy zero percent tax will come down drastically.



Items like hair oil, toothpaste and soaps, which are now taxed at 28 percent, will be taxed at 18 percent under GST.


Sugar, tea, coffee (except instant), edible oil and coal will attract 5 percent tax.


Jaitley also announced that seven rules for GST have been decided while the Council will take up the ones on transition and returns on Friday.


ALSO READ: GST Bill Passed in Rajya Sabha: Five Things to Know About the Radical Tax Plan

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