GST tax council finalises tax rates on maximum goods, services
The top decision-making body in the Goods and Services Tax (GST), the GST council, has fixed the tax framework for GST which is likely to roll out from July 1.
The majority of items are kept under the tax slab of 18%. The council has finalised the tax rates for around 1211 items on Thursday.
Fast and moving consumer goods (FMCG) stocks were trading higher after items such as cereals, which were taxed earlier at 5%, will now be zero-rated. The other items under nil rate include fresh meat, handloom, bangles, newspapers, printed books, judicial papers, natural honey, curd, milk, eggs, flour, fresh fruits and vegetables.
Coffee, sugar, tea and edible oil will attract a lower GST rate of 5%. The other items in this tax slab include fish fillet, cream, skimmed milk powder, spices, pizza, rusk, kerosene, coal, medicines, stent, lifeboats etc.
Butter, Cheese, Ghee, packaged dry fruits, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, coloring books, picture books, umbrella, sewing machines, cell phones, etc. will attract the GST rate of 12%.
Most of the items are under the tax slab of 18%. Some of these include sauces, jams, soups, ice cream, instant food mixes, mineral water, tissues, pasta, refined sugar, camera, speakers, monitors etc.
The highest tax slab would be levied on the items like Chewing gum, molasses, chocolate not containing cocoa, hair shampoo, dye, sunscreen, ATM, motorcycles, automobiles, vacuum cleaner, shavers, hair clippers, etc. Capital goods, a key asset for the manufacturing sector, will be taxed at 28%.
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