SRINAGAR: The Centre and the states on Thursday agreed on
goods and services tax rates for a majority of products and opted to lower the incidence of tax on mass-use items to ensure that prices come down in the new regime.
As a result,
foodgrains and gur have been completely exempted from the levy, while products such as mithai, edible oil, sugar, tea, coffee and coal will attract 5%
GST. Similarly, hair oil, tooth paste and soaps are in the 18% bracket along with capital goods and industrial intermediaries.
Read this story in GujaratiSources told TOI that
small cars will face 28%
GST, along with a small cess, while
luxury cars will attract 15% cess in addition of the tax.
Consumer durables such as AC and fridge too are in the 28% bracket, although officers said given the current incidence of 30-31%, there should be a reduction in prices.
“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 told reporters.
Revenue secretary
Hasmukh Adhia told reporters that of the 1,211 items, 7% will be exempted, 14% will be in the 5% slab, 17% in the 12% bracket, 43% in the 18% segment, while 19% will go into the top bracket of 28%.
Read this story in MarathiCheck here for complete guide on GST Rates List