SME Times is powered by   
Search News
Just in:   • For first time, India to host global meet on cyber space  • SMEs should adopt GST with certain precautions: Kapil Nayyar  • Actively working towards clean political funding: FM  • Inaugural Hong Kong Sports and Leisure Expo opens on Friday  • 'Undisclosed income of over Rs 5,400 cr detected after demonetisation' 
Last updated: 19 May, 2017  

gst-THMB.jpg GST rates decided on 1,211 items

GST.arun.jpg
   Top Stories
» 'GST Council may alter tax rates on textiles, hybrid cars'
» No shortage of cotton/ yarn in country: Govt
» 'African countries offer tremendous business opportunities'
» 'Nexus Incubator' awarded graduation to 10 Indian startups
» Jan-Dec financial year under Govt consideration: FM
SME Times News Bureau | 19 May, 2017
Making further progress on rolling out the Goods and Services Tax (GST) by July 1, the 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.

The Council did not take any decision on services tax rates. The two-day meeting will take up the exemption of essential services on Friday.

"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 here 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 percent, 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.

"The Council may meet again if final rates are not decided tomorrow (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.

"On many commodities there would be reduction because of the cascading effect, but we are banking on the hope that because of a better tax system and less evasion there would be tax buoyancy," he said.

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. Coal is currently taxed at 11.69 percent.

Air-conditioners and refrigerators will come under the 28 percent tax slab, while life saving drugs have been kept at 5 percent rate.

In a major measure of support to industry, the rate for capital goods, as well as industrial and intermediate items have been set at 18 percent.

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.

According to sources, Jaitley asked the states during the meeting to keep exemptions to the bare minimum.

"There cannot be 300 items in the exemption list," he said.

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.

Commenting on the GST Council's deliberations, a senior tax analyst said the rates announced were along expected lines.

"However, it seems a lot of work is yet to be done. Exemptions and issues related to reverse charge mechanism have not been finalised, and looks doubtful that it will be done in a day," said Taxmann.com Senior Consultant V.S Datey.

"Thus the chances of introducing GST by July 1 appears doubtful," he added.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
65.65
63.95
UK Pound
85.35
82.50
Euro
74.65
72.25
Japanese Yen 58.30 56.35
As on 23 Jul, 2017
  Daily Poll
Would you like to go for the Digital MSME scheme?
 Yes
 No
 Can't say
  Commented Stories
» Co-origination model: A new approach to MSME credit(12)
» Starting an import export business: Basic guide for beginners(6)
» Digital MSME scheme: Cloud made easier(5)
» RBI for PCR, says will address credit issue of MSMEs, startups(2)
» PSU banks interested in lending to SMEs: CoinTribe(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter