Breaking news: GST rates released in India: Checkout what gets cheaper and what gets costlier

Prices will change after the Goods and Services Tax is implemented from July 1, 2017. While the GST rates released by the government do not hurl any major surprises for most products, it is still early to comment on the overall effect of the new tax law. The GST council, the body responsible for coming out with a set of rates, has finalized tax slabs for goods of consumption.
While 7% items are exempt, 14% are in the lowest bracket of 5%. Around 17% items are in 12% tax bracket, 43% in 18% and 19% in the top tax bracket of 28%. This translates into the fact that a majority of the items will have 18% or less GST.

No GST tax slab

Foodgrains, milk and other articles of daily use have been exempted from taxation under the GST regime.
foodgrains | gur | milk | eggs | curd | lassi | unpacked paneer | honey | vegetables | fruits | atta | besan | maida | vegetable oil | common salt | contraceptive | bread | stamp | books | bangles

5 per cent tax slab

Items of daily use:
sugar | tea | coffee | edible oil | coal | milk powder for babies | paneer | newsprint | LPG | kerosene | spices | juice | medicines

12 percent tax slab

Non-essential items
butter | ghee | mobile phones | agarbatti | mixtures | ayurvedic medicines | tooth powder | sewing machine

18% GST tax slab

Other items:
hair oil | soap | toothpaste | corn flakes | jams | ice-cream | toilet paper | iron and steel | mineral water | camera |
28% GST tax slab
Luxury goods or health hazards
consumer durables | cars | cement | chewing gum | custard powder | pan masala | perfume | shampoo | cosmetics | fireworks | motorcycles | paint | deodorant | hair dye | washing machine | vacuum cleaner | dish washer

What gets Cheaper

There is little doubt that foodgrains, cereals, and milk will cost less from July 1. Currently, many states charge VAT on food grains including wheat and rice and milk products. However, sweets will attract 5% GST. Common use items hair oil, soaps and toothpaste will be charged at 18 per cent. Sugar, tea, coffee and edible oil will attract 5%.

Comments

Post a Comment

Popular posts from this blog

How is India suffering from chronic poverty? Tackling India’s hunger problem and ways to fight it through technology

Image
A huge chunk of the Indian population suffers from chronic hunger. On the  Global Hunger Index , India is at the 97th position. According to a study by the  International Food Policy Research Institute  ( IRPRI ), one-sixth of India’s population is undernourished, while 190 million people go to bed hungry daily. A total of 30% children below the age of 5 years are underweight. India alone accounts for around 30% of neo-natal deaths internationally, all linked to  malnutrition . Rs. 50,000 crore worth food wasted yearly  behind India’s hunger One may be tempted to conclude that the culprit is insufficient food production. However, this is not true. In India’s case, around 40 percent of fruits and vegetables and about 20 percent of grains get destroyed because of insufficient infrastructure and supply chains that are inefficient. Food never reaches consumers. Around Rs. 50,000 crore worth of food is wasted every year. Such wastage has other ramifications as well. It results not
Read more

GST will make highways free of traffic

Image
By Muqbil Ahmar The current scenario of the  logistics industry  in  India  is far from ideal. Today, Central and state governments levy different taxes separately. A  Ministry of Road Transport and Highways  report says that a typical truck spends 16% time at check-posts. On an average, a truck in India runs an annual distance of 85,000 km compared to 150,000 to 200,000 km in the Western countries. The industry is fragmented due to the state-level tax structures, which forces enterprises to put up warehouses in every state. This makes the  supply chain  longer than necessary and to a certain extent inefficient. Additionally, due to the complex tax structure, the transport industry spends 50--60 percent of resources on  tax compliance  and deposit of interstate sales tax. GST implementation aims to remove complex web of tax structure The  Goods and Services Tax  ( GST ) will be implemented this year. The new law is expected to help the overall growth of  economy  and a so
Read more

IT sector job cuts will continue, says top HR firm; 5­–6 lakh engineers to lose jobs

Image
By Muqbil Ahmar Tech Mahindra,  Infosys, Wipro, Cognizant ; all these Information Technology majors have fired thousands of employees.  India's Information Sector  seems headed for an uncertain and tumultuous future. According to a top  HR firm , the dark clouds hovering over the IT sector are here to stay. HR firm Head Hunters India has said that 5–6 lakh engineers are set to lose jobs in the next three years, that is, between 1.75 and 2 lakh per year for the next three years. "Contrary to media reports of 56,000 IT professionals to lose jobs this year, the actual job cuts will be between 1.75 lakh and 2 lakh per year in next three years, due to under- preparedness in adapting to newer technologies," Head Hunters India Founder-Chairman and MD K Lakshmikanth has said, while analyzing a report submitted by McKinsey & Company at the Nasscom India Leadership Forum on February 17. The  McKinsey report  has said that nearly half of the Information Technology se
Read more