Here’s a guide to few of the items on which the government would not levy any tax under the new GST regime.
When India wakes up tomorrow, it would have changed forever. The nation would have by then implemented its biggest ever tax reform since Independence, which impacts everyone from the biggest of the industries and the richest of the businessmen to a small shopkeeper and a commoner in your neighbourhood — even those who do not pay income tax!
With the massive change in the way all the goods and services are taxed in India, it would be good to know which items will not be taxed at all. The GST Council has made four primary tax rate slabs for various items — low rate of 5%, standard rates of 12% and 18%, and high rate of 28%. Other than this, gold and jewelry will be taxed at a concessional GST rate of 3%, while rough diamonds will attract a 0.25% levy. However, the government has chosen to keep certain essential items of daily use free from any tax levy under GST. Here’s a guide to few of such items on which the government would not earn any tax revenue:
Salt, eggs, milk, buttermilk, unpackaged curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, lassi, unpacked paneer, fresh meat, fish, chicken, palmyra jaggery, hulled cereal grains, unbranded and unpackaged tea and coffee, vegetable oil, children’s’ picture, drawing or colouring books, muddhas made of sarkanda and phool bahari jhadoo, jute, kajal (other than kajal pencil sticks), bindi, sindoor, bangles, handloom, stamps, judicial papers, printed books, newspapers, unbranded dried leguminous vegetables, silkworm laying, raw silk, silk waste, uncarded or uncombed wool, Gandhi topi, khadi yarn, coconut, coir fibre, unspun jute fibres, Indian national flag, Puja items, prasad, contraceptives, hotels and lodges with tariff below Rs 1,000, education and healthcare services.