GST will bring with it a slew of surprises for the public
GST or Goods and Services Tax is set for a July 1 rollout. The government has announced a launch at the midnight of June 30 and July 1. The new indirect tax regime, touted as the biggest tax reform since Independence in 1947, will bring with it a slew of surprises for the public. Terming GST as "a boon for households", the Central Board of Excise and Customs (CBEC) has mentioned a few household items which could become cheaper after GST. The CBEC, under the Department of Revenue, said 81 per cent of items will fall in or below the tax rate of 18 per cent under GST.
Here's a list, released by the CBEC, pertaining to tax slabs of 0, 5, 12 and 18 per cent tax under GST:
Nil
Unpackaged food grains, fresh vegetables, unbranded atta/maida/besan, gur, milk, eggs, curd, lassi, unpacked paneer/natural honey, prasad, palmyra jiggery, salt, kajal, 'phool-bhari jharoo', children's drawing/colouring books
The GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, has placed health and education among service exempt from the new indirect tax structure.
5 per cent
Sugar, tea, roasted coffee beans, edible oils, skimmed milk powder, milk food for babies, packed paneer, cashew nuts, raisin, PDS (Public Distribution System) kerosene, domestic LPG, footwear up to Rs 500, Apparel up to Rs 1,000, agarbatti (incense sticks), coir mats, matting and floor covering
12 per cent
Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam and jelly, umbrella and mobiles
18 per cent
Hair oil, toothpaste, soap, pasta, corn flakes, soups, ice cream, toiletries, computers and printers