Check New GST Rate List of 1205 Items
On Thursday, the New GST Rate were set on the 1205 items at the GST Council meeting. The Council released the list of items late at 11 o’clock. The government claims that most of these items will be either cheap or the price will remain the same.
The council has kept things like milk, curd, grains out of the purview of taxation. Instead of 11.69% tax on coal, now 5% tax will be charged. It is believed that the electricity will be cheap. Prices of SUV, sedan and luxury cars will come down. While the small cars will be expensive.
Daily needs like soap-toothpaste will also be affordable. Council has decided that only 18% GST will be charged on the 81 percent of the items under New GST Rate.
According to Arun Jaitley, tax rates on products and services will also be decided on Friday, if the decision can not be taken, then another meeting will be held.
GST is Divided into Four Tax Slabs which is Shown Below –
No Tax On These 3 Things
- Grains, milk and yogurt including wheat and rice have been kept out of the GST. Tax is charged on Grains in some states. After starting GST from July 1, the grain will be cheaper.
Electricity will be Cheap
- 11.69% tax is currently charged on coal But, when the GST implemented, only 5% tax will be charged. By this, it is expected that the electricity tariff will be reduced in many states.
These Daily Needed Things Will be Cheap
- Things such as soap, toothpaste and hair oil will be included in the 18% tax slab. So far 22-24% tax were charged on these things.
Small cars may be expensive, Cess will be charged on luxury cars
- According to the current tax rate, the 12.5%excise tax and 14.5% VAT is charged on small cars. Due to which the total tax liability is 28%.
- If GST is implemented, then along with 28% tax, 1-3% cess will be charged on the small cars. As a result, the total tax on total small cars will come from 29% to 31%. In such cases, the cost of cars will increase. Which can be compensated by car companies by increasing prices.
- Currently, 41.5% to 44.5% tax is charged on cars with more than 1500 cc engines.
- If GST is implemented, these cars will be taxed at around 43 per cent. Considering the decreasing tax, car companies can reduce prices.
- Cars are placed in the slab of 28%. Currently, 30-32% tax is charged on cars. After implementing GST, 28% tax and 1% cess will be charged on the small cars. Thus the total tax will be 29%.
- Along with 28% tax, additional 3% cess will be charged on medium segment cars. 15% cess will be charged on the luxury cars.
- No Effect On These Items
- Daily use items such as tea, coffee (not instant), sugar are placed in the slab of 5% tax. Earlier, there was the same tax on them. Hence there is no hope of any impact on them.
On the Rest Items, Tax will be Charged Like This
- On July 1, the tax on dessert will also be 5%.
- The AC and the fridge are placed in a slab of 28%.
- Life-saving drugs have been slotted at the lowest 5% slab