Sugar, tea, coffee
and milk powder
will cost less with tax
incidence coming down under the goods and services tax(GST) scheduled to be rolled out from July 1.
attracts specific central excise duty of Rs 71 per quintal plus a cess of Rs 124, which translates into ad valorem rate of more than 6 per cent.
If central sales tax
(CST), octroi, and entry tax
are factored in, the total incidence works out to more than 8 per cent.
"As against this, the proposed GST
rate on sugar
is only 5 per cent, i.e. 3 per cent less than the present incidence of taxes," the finance
- other than instant coffee
- will come down to 5 per cent, from the current 7 per cent.
attracts nil central excise duty and 5 per cent VAT.
The embedded taxes in the production of milk powder
and the incidence on account of CST, octroi, and entry tax
work out to more than 7 per cent. As against this, the proposed GST
on milk powder
is only 5 per cent.
Termed as the most ambitious tax
reform in the country, GST
will subsume most of the indirect taxes.