The new indirect tax regime in the country is to come into effect from July 1, wherein fixation of GST rates on the supplies is joint responsibility of the Central and State governments after the approval from the GST Council.
Notebooks, domestic LPG, aluminium foils, insulin, agarbatti and a large number of daily use household products will become cheaper under the GST regime set to be rolled out from July 1. In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied by the Centre and states, the finance ministry said in a statement. The current taxes are levied on account account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, among others.
The new indirect tax regime in the country is to come into effect from July 1, wherein fixation of GST rates on the supplies is joint responsibility of the Central and State governments after the approval from the GST Council. Some of the items where the GST incidence is lower than the present combined indirect tax rates are milk powder, curd, butter milk, Unbranded Natural Honey, dairy spreads, cheese, spices, tea, wheat, rice, flour, and spices.
The new tax is also lower on groundnut oil, palm oil, sunflower oil, coconut oil, mustard oil, sugar, palmyra jaggery, sugar confectionery, pasta, spaghetti, macaroni, noodles, fruit and vegetable items, several food products, pickle, murabba, chutney, sweetmeats, ketchup and sauces. The finance ministry today released a list of supplies wherein GST incidence will be lower than the current taxes. The list also includes toppings, spreads and sauces, instant food mixes, mineral water, ice, cement, coal, kerosene PDS, LPG domestic, insulin, agarbatti, tooth powder, hair oil, toothpaste, kajal, soap, X-ray films for medical use and diagnostic kits and reagents.
The new tax is also lower on plastic tarpaulin, school bag, exercise books and note books, kites, children’s picture, drawing or colouring books, silk and woollen fabrics, certain types of cotton fabrics and specific readymade garments, along with footwear of Rs 500, and helmet. Fly ash bricks and fly ash blocks, glasses for corrective spectacles, LPG stove, spoons, forks, ladles, skimmers, cake-servers, fish knives, tongs, fixed speed diesel engines of power not exceeding 15HP, tractor rear tyres and tractor rear tyre tubes, and weighing machinery.
The GST Council, comprising state finance ministers and headed by Union Finance Minister, had decided on the GST rates on all goods and services during May and June. The Council is scheduled to meet on June 18 to finalise e-way rules and anti-profiteering norms.