We already know that the GST slabs are pegged at 5%, 12%,
18% & 28%. According to the latest news from the GST council, the tax
structure for common-use goods are as under:
GST Rates Structure
Tax Rates
|
Products
|
|
0%
|
Milk
|
Kajal
|
Eggs
|
Educations Services
|
|
Curd
|
Health Services
|
|
Lassi
|
Children’s Drawing & Colouring Books
|
|
Unpacked Foodgrains
|
Unbranded Atta
|
|
Unpacked Paneer
|
Unbranded Maida
|
|
Gur
|
Besan
|
|
Unbranded Natural Honey
|
Prasad
|
|
Fresh Vegetables
|
Palmyra Jaggery
|
|
Salt
|
Phool Bhari Jhadoo
|
|
5%
|
Sugar
|
Packed Paneer
|
Tea
|
Coal
|
|
Edible Oils
|
Raisin
|
|
Domestic LPG
|
Roasted Coffee Beans
|
|
PDS Kerosene
|
Skimmed Milk Powder
|
|
Cashew Nuts
|
Footwear (< Rs.500)
|
|
Milk Food for Babies
|
Apparels (< Rs.1000)
|
|
Fabric
|
Coir Mats, Matting & Floor Covering
|
|
Spices
|
Agarbatti
|
|
Coal
|
Mishti/Mithai (Indian Sweets)
|
|
Life-saving drugs
|
Coffee (except instant)
|
|
12%
|
Butter
|
Computers
|
Ghee
|
Processed food
|
|
Almonds
|
Mobiles
|
|
Fruit Juice
|
Preparations of Vegetables, Fruits, Nuts or other parts
of Plants including Pickle Murabba, Chutney, Jam, Jelly
|
|
Packed Coconut Water
|
Umbrella
|
|
18%
|
Hair Oil
|
Capital goods
|
Toothpaste
|
Industrial Intermediaries
|
|
Soap
|
Ice-cream
|
|
Pasta
|
Toiletries
|
|
Corn Flakes
|
Computers
|
|
Soups
|
Printers
|
|
28%
|
Small cars (+1% or 3% cess)
|
High-end motorcycles (+15% cess)
|
Consumer durables such as AC and fridge
|
Beedis are NOT included here
|
|
Luxury & sin items like BMWs, cigarettes and
aerated drinks (+15% cess)
|
- sugar,
Tea, Coffee and Edible oil will fall under the 5 per cent slab, while cereals,
milk will be part of the exempt list under GST. This is to ensure that
basic goods are available at affordable prices. However, instant food has
been kept outside this bracket so, no relief for Maggie lovers!
- The
Council has set the rate for capital goods and industrial intermediate
items at 18 per cent. This will positively impact domestic manufacturers
as seamless input credit will be available for all capital goods. Indeed,
it is time for “Make In India”.
- Coal to
be taxed at 5 percent against current 11.69 per cent. This will prove
beneficial for the power sector and heavy industries which rely on coal
supply. This will also help curb inflation. Expect a good run for Coal
India tomorrow.
- Toothpaste,
hair oil, and soaps will all be taxed at 18 percent, where currently they
are taxed at 28 percent. Most of the cosmetics and fast moving consumer
goods (FMCG) brands should get the benefit of this tax reduction. After
all, Fair and Lovely might seem fairer in its pricing from now on!
- The
‘mithai’ from the neighbouring sweet shop might lose some of its flavour
as Indian sweets will now be taxable at 5 per cent. If you have a sweet
tooth, this could hurt your pocket a wee bit in the coming days.
Plus, it was announced that:
- for
restaurants serving alcohol, the tax bracket will be 18 per cent
- education,
healthcare are going to be exempted from GST
- services
on Non-AC restaurants will be 12 per cent
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