You are here: Home » Economy & Policy » News » GST
Business Standard

Sugar, tea, coffee, milk powder to become cheaper under GST

Termed as the most ambitious tax reform, GST will subsume most of the indirect taxes

Press Trust of India  |  New Delhi 

GST unlikely to push up inflation

Sugar, tea, and will cost less with incidence coming down under the goods and services tax(GST) scheduled to be rolled out from July 1.

Currently, 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 (CST), octroi, and entry are factored in, the total incidence works out to more than 8 per cent.

"As against this, the proposed rate on is only 5 per cent, i.e. 3 per cent less than the present incidence of taxes," the ministry said.

The under on and - other than instant - 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 and the incidence on account of CST, octroi, and entry work out to more than 7 per cent. As against this, the proposed on is only 5 per cent.

Termed as the most ambitious reform in the country, will subsume most of the indirect taxes.

First Published: Thu, May 25 2017. 19:53 IST
RECOMMENDED FOR YOU