GST stands for Goods and Service Tax. This tax came into existence on 1 July 2017 by Our Prime Minister Shri. Narendra Modi ji in the Parliament.
GST Rates Structure
|Lassi||Children’s Drawing & Colouring Books|
|Unpacked Foodgrains||Unbranded Atta|
|Unpacked Paneer||Unbranded Maida|
|Unbranded Natural Honey||Prasad|
|Fresh Vegetables||Palmyra Jaggery|
|Salt||Phool Bhari Jhadoo|
|Domestic LPG||Roasted Coffee Beans|
|PDS Kerosene||Skimmed Milk Powder|
|Cashew Nuts||Footwear (< Rs.500)|
|Milk Food for Babies||Apparels (< Rs.1000)|
|Fabric||Coir Mats, Matting & Floor Covering|
|Coal||Mishti/Mithai (Indian Sweets)|
|Life-saving drugs||Coffee (except instant)|
|Fruit Juice||Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly|
|Packed Coconut Water||Umbrella|
|18%||Hair Oil||Capital goods|
|28%||Small cars (+1% or 3% cess)||High-end motorcycles (+15% cess)|
|Consumer durables such as AC and fridge||Beedis are NOT included here|
|Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)|
- 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 neighbouring sweet shop might lose some of its flavour 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.
Plus, it was announced that:
- for restaurants serving alcohol, the tax bracket will be 18 per cent
- education, healthcare are going to be exempted from GST
- services on Non-AC restaurants will be 12 per cent