- June 4, 2017
- Posted by: Aditya Kumar
- Category: GST, Taxation
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 the said council at Srinagar. There has been a hype around these rates for a while and now these rates are finally in the public domain.
As soon as the GST rates were announced a huge wave of curiosity hit across industry and trade bodies. Everyone is evaluating their position as a result of this change. So in this article, we bring you our analysis of these GST rates.
|Food||Transportation||Jewellery||Mobile Phone Service||Entertainment|
In addition to the above, a few other items were mentioned in the Council’s announcement of rates. These items, and the applicable rates on them are as follows:
- 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.
- 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.
- 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.
In addition to the above, following aspects were also announced:
- for restaurants serving alcohol, the tax bracket will be 18 per cent
- education, healthcare are going to be exempted from GST
If you want to know more about the announced rates, please click on the following links. The following files will be downloaded to your computer, and they contain a complete chapter-wise list of the applicable GST rates on goods and services as approved by the GST Council in the May 18th and June 3rd Meeting.
For more details, please feel free to reach out to us.