GST: A complete guide on products and services getting cheaper or expensive from July 1
In the 14th GST Council meet held at Srinagar, Jammu & Kashmir on May 18, 2017, the Council decided the tax rates for 1,211 items. Majority of the essential goods such as food grains and personal care products have been brought into a lower tax slab under GST.
Goods and Services Tax (GST) is set to be rolled out from July 1, 2017 and the GST Council, in its meet in Srinagar on May 18, 2017, decided on tax rates for 1,211 items.
Zeebiz found that 43% of the 1211 items have been put in 18% GST slab which are bound to make things cheaper.
14% of the items have been brought under the 5% GST slab, 17% items in 12% tax slab, 43% items in 18% tax slabs and only 7% have been exempted from GST ambit.
Starting with the quintessential soap to hotel and restaurant services will become cheaper as they have been brought under a lower tax slab under GST.
Soap which are currently taxed at 28% will be taxed at 18% under GST. Similarly toothpaste will come down from 22-24% current tax rate to 18%.
Personal hair products - hair oil will become cheaper as it will drop 10% from 28% current tax rate to 18% under GST.
Cereals and food grains that have a current tax rate of 6% and 5% respectively will be excluded from the GST ambit.
Also under goods that are excluded from GST and brought under 0% tax rate are milk and dairy products including fresh milk, pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk.
Food grains such as wheat, meslin, rye, barley, oats, maize, rice, sorghum, buckwheat, jawar, bajra, ragi, millet and canary seeds will be at 0% tax rate.
Eggs, curd, butter milk, Chena or paneer (except units in containers with a brand name), and natural honey will be at 0% tax rate under GST, the Council said in the GST rate schedule for goods.
Edible oil that is currently taxed between 3-9% will be brought down to 5% under GST.
Tea, coffee and masala that is taxed at 3-9% will be at 5% GST rate.
Processed food items that draw tax rates of 15% will be taxed at 5% under GST.
Coal will come down from 11.7% to GST 5%.
Under services, entertainment services will be brought down from 22% to 18% under GST.
Staying at hotels post the implementation of GST will become cheaper as they are currently taxed at 22% and a posed to be under the 18% tax bracket.
Similarly with restaurants which will come down to 18% from 22% tax slab.
In the second half of the GST Council meet today fixed rates on services as well as products like beedi cigarette, tobacco, footwear, gold, textile, handloom, handicraft, agricultural equipment and biscuits, will be debated on.
Tax rates for services was decided in the earlier Council meet to differ between 12% and 18% slabs.