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Foodgrains to be cheaper under GST

Press Trust of India  |  Srinagar 

Foodgrains will cost less from July 1 when the nation-wide Goods and Service (GST) is rolled out as the Council today decided to exempt the daily-use commodities from the levy.

Common use products like hair oil, soaps and toothpaste will be charged with a single national sales or of 18 per cent instead of present 22-24 per cent incidence through a combination of central and state levies.



The rates for all but six items were finalised at the first day of the two-day meeting here of the Council, headed by Union Minister and comprising state representatives.

Milk and curd will continue to be exempt from taxation when the Goods and Service (GST) replaced current indirect taxes. 'Mithai' or sweets will attract 5 per cent levy.

Daily-use items like sugar, tea, coffee (barring instant coffee) and edible will attract the lowest rate of 5 per cent, almost the same as current incidence.

Prices of foodgrains, especially wheat and rice, will come down as they will be exempt from Currently, some states levy Value Added (VAT) on them.

"We have finalised rates for majority of items as well as the exempt list (at today's meeting)," Jaitley told reporters here.

The rate for all but six out of the 1,211 items was decided on the first day, he said, adding the rate for items that would be decided tomorrow include gold, footwear, branded items and bidi.

"Rates have been finalised for the rest," he said.

Also, the for packaged food items is to be finalised.

Tomorrow's meeting will also decide on the rate of for services, he said.

Seven per cent of the items fall under the exempt list while 14 per cent have been put in the lowest bracket of 5 per cent. Another 17 per cent items are in 12 per cent bracket, 43 per cent in 18 per cent slab and only 19 per cent of goods fall in the top bracket of 28 per cent.

As many as 81 per cent of the items will attract 18 per cent or less

Aerated drinks and cars will be in 28 per cent bracket. On top of the peak rate, small cars will attract a 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.

On gold, states demanded a 4 per cent even though the rate is not among the 5, 12, 18 and 28 per cent approved bands.

ACs and refrigerators will fall in the 28 per cent slab while life saving drugs have been kept at 5 per cent rate.

Jaitley said there will be no inflationary impact as most of the rates which are at 31 per cent have been brought down to 28 per cent.

Coal will attract of 5 per cent as against the current incidence of 11.69 per cent.

"Cereals will be in exempt list. But what is to be done with packaged and branded food that has to be separately decided. We are yet to make a decision on that," he said.

Jaitley said the key feature of today's rate decision has been that "rate under will not go up for any of the commodities. There is no increase. On many commodities, there is a reduction particularly because the cascading effect of is gone."

"Of several commodities, we have consciously brought down the In the overall basket there would be a reduction, but we are banking on the hope that because of a more efficient system, evasion would be checked and buoyancy would go up. That despite reduction the revenue neutrality and buoyancy thereafter would be maintained," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Foodgrains to be cheaper under GST

Foodgrains will cost less from July 1 when the nation-wide Goods and Service Tax (GST) is rolled out as the GST Council today decided to exempt the daily-use commodities from the levy. Common use products like hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 per cent instead of present 22-24 per cent tax incidence through a combination of central and state government levies. The GST rates for all but six items were finalised at the first day of the two-day meeting here of the GST Council, headed by Union Finance Minister Arun Jaitley and comprising state representatives. Milk and curd will continue to be exempt from taxation when the Goods and Service Tax (GST) replaced current indirect taxes. 'Mithai' or sweets will attract 5 per cent levy. Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 per cent, almost the same as current incidence. Prices of foodgrains, especially ... Foodgrains will cost less from July 1 when the nation-wide Goods and Service (GST) is rolled out as the Council today decided to exempt the daily-use commodities from the levy.

Common use products like hair oil, soaps and toothpaste will be charged with a single national sales or of 18 per cent instead of present 22-24 per cent incidence through a combination of central and state levies.

The rates for all but six items were finalised at the first day of the two-day meeting here of the Council, headed by Union Minister and comprising state representatives.

Milk and curd will continue to be exempt from taxation when the Goods and Service (GST) replaced current indirect taxes. 'Mithai' or sweets will attract 5 per cent levy.

Daily-use items like sugar, tea, coffee (barring instant coffee) and edible will attract the lowest rate of 5 per cent, almost the same as current incidence.

Prices of foodgrains, especially wheat and rice, will come down as they will be exempt from Currently, some states levy Value Added (VAT) on them.

"We have finalised rates for majority of items as well as the exempt list (at today's meeting)," Jaitley told reporters here.

The rate for all but six out of the 1,211 items was decided on the first day, he said, adding the rate for items that would be decided tomorrow include gold, footwear, branded items and bidi.

"Rates have been finalised for the rest," he said.

Also, the for packaged food items is to be finalised.

Tomorrow's meeting will also decide on the rate of for services, he said.

Seven per cent of the items fall under the exempt list while 14 per cent have been put in the lowest bracket of 5 per cent. Another 17 per cent items are in 12 per cent bracket, 43 per cent in 18 per cent slab and only 19 per cent of goods fall in the top bracket of 28 per cent.

As many as 81 per cent of the items will attract 18 per cent or less

Aerated drinks and cars will be in 28 per cent bracket. On top of the peak rate, small cars will attract a 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.

On gold, states demanded a 4 per cent even though the rate is not among the 5, 12, 18 and 28 per cent approved bands.

ACs and refrigerators will fall in the 28 per cent slab while life saving drugs have been kept at 5 per cent rate.

Jaitley said there will be no inflationary impact as most of the rates which are at 31 per cent have been brought down to 28 per cent.

Coal will attract of 5 per cent as against the current incidence of 11.69 per cent.

"Cereals will be in exempt list. But what is to be done with packaged and branded food that has to be separately decided. We are yet to make a decision on that," he said.

Jaitley said the key feature of today's rate decision has been that "rate under will not go up for any of the commodities. There is no increase. On many commodities, there is a reduction particularly because the cascading effect of is gone."

"Of several commodities, we have consciously brought down the In the overall basket there would be a reduction, but we are banking on the hope that because of a more efficient system, evasion would be checked and buoyancy would go up. That despite reduction the revenue neutrality and buoyancy thereafter would be maintained," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Foodgrains to be cheaper under GST

Foodgrains will cost less from July 1 when the nation-wide Goods and Service (GST) is rolled out as the Council today decided to exempt the daily-use commodities from the levy.

Common use products like hair oil, soaps and toothpaste will be charged with a single national sales or of 18 per cent instead of present 22-24 per cent incidence through a combination of central and state levies.

The rates for all but six items were finalised at the first day of the two-day meeting here of the Council, headed by Union Minister and comprising state representatives.

Milk and curd will continue to be exempt from taxation when the Goods and Service (GST) replaced current indirect taxes. 'Mithai' or sweets will attract 5 per cent levy.

Daily-use items like sugar, tea, coffee (barring instant coffee) and edible will attract the lowest rate of 5 per cent, almost the same as current incidence.

Prices of foodgrains, especially wheat and rice, will come down as they will be exempt from Currently, some states levy Value Added (VAT) on them.

"We have finalised rates for majority of items as well as the exempt list (at today's meeting)," Jaitley told reporters here.

The rate for all but six out of the 1,211 items was decided on the first day, he said, adding the rate for items that would be decided tomorrow include gold, footwear, branded items and bidi.

"Rates have been finalised for the rest," he said.

Also, the for packaged food items is to be finalised.

Tomorrow's meeting will also decide on the rate of for services, he said.

Seven per cent of the items fall under the exempt list while 14 per cent have been put in the lowest bracket of 5 per cent. Another 17 per cent items are in 12 per cent bracket, 43 per cent in 18 per cent slab and only 19 per cent of goods fall in the top bracket of 28 per cent.

As many as 81 per cent of the items will attract 18 per cent or less

Aerated drinks and cars will be in 28 per cent bracket. On top of the peak rate, small cars will attract a 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.

On gold, states demanded a 4 per cent even though the rate is not among the 5, 12, 18 and 28 per cent approved bands.

ACs and refrigerators will fall in the 28 per cent slab while life saving drugs have been kept at 5 per cent rate.

Jaitley said there will be no inflationary impact as most of the rates which are at 31 per cent have been brought down to 28 per cent.

Coal will attract of 5 per cent as against the current incidence of 11.69 per cent.

"Cereals will be in exempt list. But what is to be done with packaged and branded food that has to be separately decided. We are yet to make a decision on that," he said.

Jaitley said the key feature of today's rate decision has been that "rate under will not go up for any of the commodities. There is no increase. On many commodities, there is a reduction particularly because the cascading effect of is gone."

"Of several commodities, we have consciously brought down the In the overall basket there would be a reduction, but we are banking on the hope that because of a more efficient system, evasion would be checked and buoyancy would go up. That despite reduction the revenue neutrality and buoyancy thereafter would be maintained," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22