Economics

All about GST….

So finally, Goods and Services Tax (GST) has made its way clear and is expected to be under effect from 1st July, 2017. Please find the below link to know about the basics of GST.

https://anishoza.wordpress.com/2015/12/13/gst/

 

What are the Final GST rates?

This is the basic question that is under a limelight currently. People are not able to clarify themselves from the rates of GST.

Firstly, there is no minimum GST rates and Maximum GST rates on each goods. That means there are distribution of products falling in one of the following rates.

0%, 5%, 12%, 18% and 28%

Above are the rates of GST or what I prefer to say “Bracket”. What seems to be an all of a different scenario and the most common problem that people are unable to distinguish is 28% + Cess goods which are termed as ‘Sin Goods’, It will mainly attract goods such as tobacco and aerated drinks.

Now let’s see some examples falling in each category:

0% (NO GST)

That means on the goods falling under this category are exempted from any tax.
No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc. And Service such as, Hotels and Lodges with tariffs below ₹ 1,000/- are been exempted from any tax.

5%

Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, and lifeboats will attract tax of 5 %. And falling in this category are Services such as Transport [Railways and Air transport (Economy Class tickets)], small restaurants (not defined) whose main input is petroleum.

12%

Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, namkeen, Ayurveda medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones etc., And Services such as Non-AC hotels, fertilizers, Work Contracts will be under this category. Air transport mainly First Class tickets.

18%

Most items are under this tax slab which include flavored refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors. And Services such as AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST.

28%
Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, will attract 28 % tax – the highest under GST system. And Services such as 5-star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST.

 

What are CGST, SGST and IGST?

Central GST (CGST) which be levied by Central Government, State GST (SGST) which will be levied by State Government and Integrated GST (IGST) which will be levied by Central Government on inter-State supply of goods and services.

 

Many taxes has been subsumed under GST which are as follows:

Central Excise duty

Additional Duties of Customs (commonly known as CVD)

Special Additional Duty of Customs (SAD)

Service Tax

State VAT

Central Sales Tax

Entertainment and Amusement Tax (except when levied by the local bodies)

Taxes on lotteries, betting and gambling.

 

There are still some goods and services which are yet to be decided. In the upcoming meeting which is slated to be on 2nd June, 2017, will have all the remaining goods and services rates decided.

 

ThankYou for reading.

Article Source: economictimes.

 

 

 

 

 

 

 

 

 

 

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