GST meet in Srinagar: 10 key takeaways
The Centre and states on Thursday finalised GST or goods and services tax rates for 1211 items. As expected, the GST council that met today in Srinagar for the second time in two days decided to lower the incidence of tax on mass-use items. The rollout of GST is expected to add 2 per cent to the country's GDP or gross domestic product.
Here's your cheatsheet to Thursday's key decisions from the GST meeting: 1. Foodgrains, cereals, milk, jaggery have been completely exempt from GST. 2. Indian sweets (like gulab jamun. Rasgulla etc.), edible oil, sugar, tea, coffee and coal will attract 5 per cent GST. 3. Hair oil, toothpaste and soaps are in the 18 per cent bracket along with capital goods and industrial intermediaries. 4. Nearly 81 per cent of the items will fall under the sub-18 per cent GST rate slabs, Revenue Secratery Hasmukh Adhia said. 5. Only 19 per cent of the goods will be taxed above 18 per cent, the Revenue Secretary said. 6. Small cars will face 28 per cent GST, along with a small cess, while luxury cars will attract 15 per cent cess in addition to GST, sources told Times of India. 7. Consumer durables such as airconditioner and fridge too are in the 28 per cent GST bracket, although officers said given the current incidence of 30-31 per cent, there should be a reduction in prices. 8. "There is no increase on any commodity. On many of them there is a reduction and tax on will also go away. Overall, there will be a reduction... One criteria in mind is that overall impact should not be inflationary," Finance Minister Arun Jaitley said. 9. Of the 1211 items, 7 per cent will be exempted, 14 per cent will be in the 5 per cent slab, 17 per cent in the 12 per cent bracket, 43 per cent in the 18 per cent segment, while 19 per cent will go into the top bracket of 28 per cent, the Revenue Secretary said. 10. Under the current system, a product is taxed multiple times with different state levies and taxes.