- Government has named some items that will attract lower taxes after GST
- Wheat/rice, unbranded flour, children's drawing books to attract 0% tax
- Few items to attract 9% lesser tax under GST, according to CBEC
GST subsumes over a dozen central and local levies including excise duty, service tax, VAT or value-added tax and octroi.
In its list, the CBEC mentioned six items - wheat, rice, unbranded flour, curd/lassi/butter milk, unbranded natural honey and children's picture/drawing/colouring books - where tax incidence has come down to zero per cent compared with pre-GST tax incidence. The Central Board of Excise and Customs also mentioned 10 items which attract 5 per cent tax under GST, compared with a tax incidence of 6-10 per cent earlier. The government body also named few items where GST has lowered tax incidence by as much as 9 per cent. These items include mineral water, hair oil, toothpaste, soap and staplers.
"The pre-GST tax incidence would be higher if the tax incidence on account of CST (central sales tax), octroy, entry tax, etc. (which is more than 2 per cent) is also included," the CBEC said.
Here's a comparison of tax incidence on some times, as given by the CBEC:
|Item||Pre-GST incidence||GST rate|
|Unbranded natural honey||6%||0%|
|Children's picture, drawing or colouring books||7%||0%|
|Ultra high temperature (UHT) milk||6%||5%|
|Tea (other than unprocessed green leaves of tea)||6%||5%|
|Vegetable edible oils||6%||5%|
|Footwear up to Rs 500||10%||5%|
|Kerosene pressure lantern||8%||5%|
|Ketchup and sauces||12%||12%|
|Toppings, spreads (other than mayonaise, salad dressings, mixed condiments and mixed seasonings)||12%||12%|
|X-Ray films for medical use||23%||12%|
|Diagnostic kits and reagents||16%||12%|
|Fixed speed diesel engines of power not exceeding 15HP||16%||12%|
|Fly ash bricks and fly ash blocks||16%||12%|
|Printers (other than multifunction printers)||19%||18%|
|Tractor rear tyres and tubes||20%||18%|
|Headgear and parts thereof||27%||18%|