First List Of Commodities And Their GST Rates Released; Arun Jaitley Says, No Increase In Taxes
On Thursday, after the first meeting of the 14th Goods and Services Tax (GST) Council, a list of goods and its GST rates has been released.
The 14th Goods and Services Tax (GST) Council meeting was held on Thursday in Srinagar and after the meeting, the first list of goods and its GST rates have been released. Union Finance Minister, Arun Jaitley has stated that under GST, the prices of commodities will not go up, as GST will do away with the cascading effect, Indian Express reported. Moreover, with GST, the prices of a lot of commodities will go down, especially the ones that falls under the category of mass consumption.
Notably, the commodities have been divided under different slabs of tax rates. According to NDTV, under the zero tax slab comes foodgrains that includes cereals and jaggery, fresh vegetables, pappad, bindi and contraceptives amongst some more items; under the five percent tax slab comes commodities like edible oil, tea, coffee, frozen vegetables, condensed milk, sugar and also coal; under the 18 percent tax slab comes hair oil, soap and toothpaste, and; under the 28 per cent slab comes refrigerators and ACs. Moreover, small petrol cars, which have less than 1200cc engine capacity will have 1 per cent cess and diesel cars which have less than 1500cc engine capacity will have 3 percent cess. But, large cars and SUVs that have greater than 1500cc engine capacity will have 15 per cent cess.
However, for commodities like cigarettes, tobacco, it has been proposed that 204 per cent cess be levied for pan masala, for cigarettes below 65 mm the cess will be 5 percent along with Rs 1591 for every thousand as additional amount.
It is expected that on Friday, the Council will take up decision on six categories that includes textile, agricultural implements, gold, footwear, beedi and packaged food items.
It must be mentioned that the first meeting saw some states raising concerns on whether the rates are revenue-neutral or not and also questioned the impact that the commodity with under lower tax rates would have on their revenue.