Under GST, items like unpacked food grains, gur, milk, eggs and salt won't attract any tax
- Experts say overall tax burden on goods is expected to fall over time
- Banking and financial services get costlier
- GST changed the indirect tax landscape of the country
GST or goods and services tax changed the indirect tax landscape of the country from July 1 by subsuming over a dozen of state and central taxes. Since GST is meant to eliminate "tax on tax", experts say overall tax burden on goods is expected to fall over time. Many essential goods such as unpacked food grains, gur, milk, eggs and salt won't attract any tax under GST. Some services will get costlier as banking and financial services have been put in the 18 per cent rate slab under GST, from 15 per cent earlier.
"However, going forward, it is expected that due to reduced cost because of availability of GST credit on items hitherto not available, the price of services will also come down which will benefit the consumers," says Sandeep Sehgal, director-tax and regulatory at Ashok Maheshwary & Associates LLP.
After GST rollout, many items like footwear below Rs 500 and garments could become cheaper. On the other hand, items like TV and small cars could become costlier.
Petroleum products such as petrol, diesel and aviation turbine fuel have been kept out of GST as of now. The GST Council will take a decision on it at a later date. Alcohol has also been kept out of GST.
Here is the list of goods, their current effective tax rates and respective GST rates under the new tax system, according to professional services firm EY:
Powered by EY
Notes from EY:
-These are illustration purposes only, not meant for direct implementation or reliance
-These rates are based on the best of our understanding of the applicable rates and should not be taken as an assurance of ultimate rates.
-Information as of June 20.
-EY assumes no responsibility to update for changes in after the date of the submission.
"However, going forward, it is expected that due to reduced cost because of availability of GST credit on items hitherto not available, the price of services will also come down which will benefit the consumers," says Sandeep Sehgal, director-tax and regulatory at Ashok Maheshwary & Associates LLP.
After GST rollout, many items like footwear below Rs 500 and garments could become cheaper. On the other hand, items like TV and small cars could become costlier.
Petroleum products such as petrol, diesel and aviation turbine fuel have been kept out of GST as of now. The GST Council will take a decision on it at a later date. Alcohol has also been kept out of GST.
Here is the list of goods, their current effective tax rates and respective GST rates under the new tax system, according to professional services firm EY:
| Items | Earlier Rate (%) | GST (%) |
|---|---|---|
| Perfume | 17.5 - 27 | 18 |
| Cosmetics | 28 | |
| Cheese | 5-14.5 | 12 |
| Butter | 12 | |
| Glucometers | 11-20.5 | 12 |
| Tableware - Metal | 11 | 18 |
| Revised 12% for spoons, forks, ladles, skimmers, cake servers, fish knives, tongs | ||
| Tableware - Ceramic | 17.5 | 18 |
| Tableware - Wood | 18 and 28 | |
| Tableware - Plastic | 18 | |
| Kitchenware - Metal | 11-20.5 | 18 |
| Revised 12% for Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs | ||
| Kitchenware-Ceramic | 17.5 - 27 | 18 |
| Kitchenware-Wood | 18 and 28 | |
| Kitchenware-Plastic | 18 | |
| Kitchenware-Fly ash | 18 | |
| X-Ray Apparatus (for medical, dental & veterinary) | 17.5-27 | 12 |
| X-Ray Apparatus | 28 | |
| Footwear (below Rs. 500) | 14.41 | 5 |
| Footwear(above Rs. 500) | 14.41 | 18 |
| Readymade garments (below Rs. 1000) | 5-6 | 5 |
| Readymade garments (above Rs. 1000) | 18.5 | 12 |
| Biscuits( Less than Rs. 100/kg) | 11.89 | 18 |
| Biscuits(Above Rs. 100/kg) | 16.09 | 18 |
| Corn-flakes | 9.86 | 18 |
| Wrist watch | 20.64 | 28 |
| Jam | 5.66 | 18 |
| Baby food (sold in unit containers) | 7.06 | 18 |
| Small Cars (<4m <1200 cc petrol) | 25-27 | 28+1 (cess) |
| Small Cars (<4m <1500 cc diesel) | 25-27 | 28+3 (cess) |
| Mid-segment (<1500 cc) | 36-40 | 28+15 (cess) |
| Cars with 1500 cc & larger engines | 41.5-44.5 | 28+15 (cess) |
| Vehicles for transport with 10 to 13 passenger capacity (cannot be considered as bus) | 39-41 | 28+15 |
| Motorcycles | 25-35 | 28 |
| Motorcycles Engine >350 | 25-35 | 28+3 (cess) |
| Television | 25-27 | 28 |
| Stationery (Plastics) | 11-27 | 18 |
| Stationery (Paper) | 12 and 18 | |
| Rates revised on following items from 18% to 12% - Exercise books and note books | ||
| Stationery (Pen/Fountain Pen) | ||
| Rates revised on following items from 18% to 12% - Eraser | ||
| Renewable energy devices | 17-18 | 5 |
| Iron Ore | 17-18 | 5 |
| Digital Cameras | 25-27 | 28 |
| Luxury items like yacht | 25-27 | 28+3 (cess) |
| Music Instruments (Handmade) | 0-12.5 | 0 |
| Music Instruments (Other than Handmade) | 25-27 | 28 |
Notes from EY:
-These are illustration purposes only, not meant for direct implementation or reliance
-These rates are based on the best of our understanding of the applicable rates and should not be taken as an assurance of ultimate rates.
-Information as of June 20.
-EY assumes no responsibility to update for changes in after the date of the submission.
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