ALSO READBring clarity over GST rates for printers, MAIT asks Finance Ministry GST Council to next meet on June 18; to review, amend rates COAI writes to FinMin, seeks cut in GST rates for telecom GST Bill to be introduced in TN Assembly today GST Council constitutes 18 sectoral groups for smooth roll-out of GST
The incidence of tax on majority of goods is lower under the Goods and Services Tax (GST) regime as compared to the current indirect taxes on account of levy of central excise, service tax, value-added tax (VAT), octroi, entry tax, central sales tax and cascading effect, the Finance Ministry said on Thursday.
"In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied on account of central excise duty rates/ embedded central excise duty rates/ service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of central sales tax, octroi, entry tax levied by the Centre and states," the Ministry said here in a statement.
The tax incidence under GST is lower than the present combined indirect tax rates for milk powder, curd, butter milk, unbranded honey, dairy spreads, cheese, cashewnut, raisins, spices, tea, wheat, rice, flour, edible oils, sugar, macaroni, noodles, fruit and vegetable items, pickle, sweetmeat, sauces, instant food mixes, ice, cement, coal, domestic Liquefied Petroleum Gas (LPG) and LPG stove, it said.
Kerosene, insulin, tooth powder, incense sticks, hair oil, toothpaste, soap, diagnostic kits, school bags, kites, note books, children's colouring books, fabrics, footwear, helmet, spectacles, cutlery, aluminium foil, tractor tyres and tubes, weighing machine, sewing machine, closed-circuit television (CCTV), printers, recorder, car for physically handicapped person, stapler, Braille watches, medical furniture, Light Emitting Diode (LED), baby carriages, bamboo furniture, kerosene lantern and sports goods will also have lower incidence of tax under GST, it added.
The new indirect tax regime in the country is to come into effect from July 1.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)