GST council has agreed on the majority of the goods and services tax rates, which the NDA administration proposes to roll out from July 1.
Chaired by Finance Minister Arun Jaitley, the 14th Goods and Services Tax (GST) Council meeting in Kashmir set the rates for 1,211 items, where a bulk of items were kept at 18%.
Here's all that you need to know.
GST has been exempted for food grains, milk
Seven rules okayed, transition provisions and returns delayed
FM Arun Jaitley stated that the council has approved seven rules of GST and two remaining rules on transition and return are being looked upon by the legal committee.
Tax slabs and distribution percentage
Goods and Services Tax comprises of four basic rates of taxation - 5%, 12%, 18% and 28%.
Revenue secretary Hasmukh Adhia said, "Of the 1,211 items at the four-digit harmonized system of nomenclature, 7% have been exempted; 14% will attract 5% taxation; 17% will face 12% taxation; 43% will get 18%; and 19% will get 28% taxation."
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Goods and Services Tax exempted list
GST exempt list will constitute of cereals (current 5%), milk, curd, Gur (jaggery) and foodgrains.
Jaitley said, "Cereals will be on the 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."
Other taxation slabs and items under them
GST 5% taxation slab will have Coal (currently 11.7%), Sugar, Tea, and Coffee (excluding instant version), 'Mithai' or sweets, life-saving drugs.
GST 12% and 18% taxation slabs will have common man items.
GST 28% taxation slab will have toothpaste, hair oil, soaps, aerated drinks, AC and refrigerators; cars (added cess for cars, small cars 1% cess, mid-sized 3% and 15% for luxury cars)
19 May 2017
GST- Tax on services finalized; education, healthcare exempted
Service tax rates have been kept similar to that of goods: 5%, 12%, 18% and 28%.
In hospitality, five-star hotels will levy 28% tax, AC restaurants 18%, while those with Rs. 1,000-2,500 tariff will charge 12%.
Transport services will charge 5% cess, while entertainment will charge 18%.