With the Central Government likely to roll out the Goods and Service Tax (GST) on July 1, the Press Information Bureau released an information brochure explaining the various tax brackets under which various services would be placed.
GST will simplify a web of taxes, regulations and border levies by subsuming an array of central and state levies including excise duty, service tax and VAT.
It will gradually re-shape India's business landscape, making the world's fastest-growing major economy an easier place to do business.
GST has been dubbed as the most significant economic reform since BJP government came to power in 2014 and is expected to add as much as 2 percentage points to the GDP growth rate besides raising government revenues by widening the tax net.
A four-rate structure that exempts or imposes a low rate of tax of 5 per cent on essential items and top rate of 28 per cent on cars and consumer durable goods has been finalised. The other slabs of tax are 12 and 18 per cent.
Items with no GST: Unpacked food grains, gur, milk, eggs, curd, lassi, unpacked paneer, unbranded natural honey, fresh veggie, unbranded atta, unbranded maida, unbranded besan, prasad, palmyra jaggery, salt, kajal, phool bhari jhadoo, children's drawing and colouring books, education services, health services
Items that will have 5% GST: Sugar, tea, roasted coffee beans, edible oils, skimmed milk powder, milk food for babies, packed paneer, PDS kerosene, domestic LPG, fabric, footwear (up to Rs 500), apprals (up to Rs 1,000), cashew nuts, resins, agarbatti, coal, coir mats, matting, and floor covering
Items that will have 12% GST: Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, jelly, umbrellas, cell phones
Items that will have 18% GST: Hair oil, toothpaste, soap, pasta, corn flakes, soups, ice creams, toiletries, computers, printers.
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