It is possible that the common man will not be impacted much by potential price rise post GST implementation since 81% items will attract below 18% tax rate. The rates for 1,211 items were finalized today by the Goods and Services Council. Speaking about the approved tax rates under GST, Finance Minister Arun Jaitley said, “GST Council today approved 7 GST rules in a meeting held in Srinagar, while legal committee is looking at remaining 2 GST rules (return, transition rules).” The GST Council is expected to meet tomorrow as well to decide tax rates on services. Another meeting may be held if rates for all items are not finalized tomorrow.
Some of the rates finalized today are as follows:
- Coal – 5% (current tax incidence is 11.69%)
- Sugar, tea, coffee, edible oil – 5%
- Hair oil, soap, toothpaste – 18%
- Cereal – exempted from tax (current tax incidence is 5%)
- Milk – Exempted from tax
- Cars – Tax incidence will be the same. All cars could attract a tax rate of 28%, 1% and 3% or a 15% cess will be levied on tax incidence.
- Motorcycles above 350cc – 3% cess will be levied