The Council, chaired by Finance Minister Arun Jaitley, at its 15th meeting also decided on rates of yarns, agriculture machinery, apparels and rough diamonds among others. The council, Jaitley said, will again meet on June 11, before the rollout of the new indirect tax regime. The all-powerful council has also finalized the GST rules regarding transition and return filings.
Jaitley said the council was also apprised of the IT preparedness which is necessary for the successful roll-out of the GST. "GSTN made a detailed presentation on the amount of work done and IT preparedness," he told reporters after the meeting.
The GST Council decided to tax gold at 3 percent, footwear below Rs 500 at 5 percent and biscuits at 18 percent under the Goods and Services Tax, which will be rolled out from July 1. On the other hand, Beedis will be taxed at 28 percent and tendu leaves at 18 percent. A nominal rate of .025 percent will be imposed on rough diamonds
Jaitley said footwear costing below Rs 500 will be taxed at 5 percent, while that above this amount will attract 18 percent levy. Currently, footwear priced from Rs 500-1,000 attracts 6 percent excise duty. Besides, states levy VAT on it. As regards readymade garments, they will attract a levy of 12 percent. Solar panels will be taxed at 5 percent under GST. Tendu leaves and bidis would be taxed at the rate of 18 percent and 28 percent respectively, the finance minister said, adding that there will be no cess on bidis. On the other hand, rough diamonds will attract a levy of 0.25 per cent. For footwear and textiles, Jaitley said that a major concession has been given and the items being used by the common man will be taxed at low rates.
The GST Council has already fitted over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 percent last month. GST will subsume all major levies including excise, service tax and VAT, unifying 16 different taxes, and make India a single market.
Lets Checkout the Present Tax Rates and GST Rates on certain Goods:
Goods Present Rate of Tax GST Tax Rate
Gold 2% 3%
Readymade garments < Rs.1000 5% 5%
Readymade garments > Rs.1000 5% 12%
Footwear < Rs. 5009. 5% 5%
Footwear > Rs. 500 29% 18%
Biscuits 23% 18%
Packaged Food - 5%
Bidi 20% 28%
Solar Panel 0% 5%
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