GST Update July 2017

#GST
the Goods and Service Tax (GST) Council has decided rates for around 1,150 items out of the total 1,211. The rates for remaining goods will be discussed and finalised on Friday.

Here’s a breakup of the goods falling under the various tax slabs.

43 percent items are under the 18 percent tax rate.
19 percent are under the 28 percent tax rate.
17 percent are under the 12 percent tax rate.
14 percent items fall under the 5 percent tax rate.
7 percent items fall in the exemption list.

Sugar, tea, coffee, sweets and edible oil will fall under the 5 percent tax bracket, said Hasmukh Adhia, financial services secretary, Ministry of Finance. Coal will also be taxed at 5 percent as opposed to the current incidence of around 10 percent.

Goods such as hair oil, toothpaste and soaps will fall in the 18 percent category. All capital goods and industrial intermediates will also fall under the 18 bracket. This will help bring down inflation.

Cereals, milk and jaggery will be exempted from any tax. The rates for gold, beedi, cigarette, agricultural implements, footwear, textiles and biodiesel have not been decided yet.

The council approved seven rules in today’s meeting in Srinagar. The legal committee is working on the remaining two relating to transition provision and return.

The council had finalised a four-tier rate structure of 5, 12, 18 and 28 percent, with an additional levy or cess on demerit goods, which will fall under the highest tax slab.

The council on April 7 passed the five GST bills – Central GST, State GST, Integrated GST, Compensation Bill and the Union Territories GST.

The blanket tax system is expected to be rolled out from July 1. However, some company leaders believe that a July implementation seems unrealistic with most of the small and medium businesses still not registered on the GST Network.
By: via Everything CA

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