Finance Minister Arun Jaitley says that the GST has been made by the consensus after detailed discussions.
Federal indirect tax body the Goods and Services Tax (GST) Council on Saturday decided to stick with the date 1 July deadline to roll out the indirect tax reform and cleared the tax rates for all the remaining commodities by keeping mass used items in the closest slab to the current tax burden on them, as said by Arun Jaitley in New Delhi yesterday.
He further said that the decisions were made by the consensus after detailed discussions and we are confident of keeping on the target date. The rate of taxes will be different this time as said by Jaitley, gold, and jewelry will be taxed at the rate of 3% and traders demanded 1.5% compromise and Kerala Government has demanded 5%. All the biscuits range will attract the GST of 18% which is lower than the current tax burden.
The company which will control the GST like their tax return and invoices has said that they are ready for the task, as said by Jaitley. The West Bengal Finance Minister Amit Mitra says that there is a big doubt about the roll out by 1 July however Jaitley said that there was no discussion on this part in the conference.
Let’s have a look at the items which will attract the GST:-
- Packaged food- 5%
- Non- packaged food items- Tax Exempted
- Footwear- Below Rs.500 5% above 500- 18%
Quiet good because the current rate running below Rs.500 is 9.5%
- Bidis- 28%
- Rolling Bidis (Patta)- 18%
- Rough Diamond- 0.25%
- Manmade items- 5%
- Man-made yarn- 18%
- Fabric of all categories- 5%
- Apparel above Rs.1000- 12%
Below Rs.1000- 5%
However, there was no announcement regarding the reduction in the rate of GST, but in the conference Jaitley has announced that the solar panels will be taxed at 5%, which previously used to tax at the rate of 18%.
According to the latest reports, the council will again sit back and will discuss on the reduction of the tax rate for the industry which is a pending issue.