On Thursday, in the GST Council meeting, a new GST rate was fixed on 1205 items. The Council released the list of items late at 11 o’clock. The government claims that most of these items will either be cheaper or the price will remain the same.
The Council has kept things like milk, curd, and grain out of the scope of taxation. 5% tax will be levied instead of 11.6 9% tax on coal. It is believed that electricity will be cheap and prices of SUV, sedan and luxury cars will come down. While smaller cars will be expensive.
The council has decided that the daily needs like soap-toothpaste will be cheaper, under the new GST rate, 81 percent of the goods will be charged only 18 percent GST.
According to Arun Jaitley, tax rates on products and services will be decided on Friday, if the decision cannot be taken, then more meetings will be held once.
[media-credit name=”via” align=”aligncenter” width=”640″][/media-credit]
Table of Contents
GST is divided into four slabs which are shown below
There is no tax on these 3 things.
- Things such as cereals, milk, and yogurt, including wheat and rice, have been excluded from GST. In some states, the tax is imposed on grains. After starting GST from July 1, grains will be cheaper.
The prices for electricity will be inexpensive.
- Currently, coal is charged 69% tax but, when GST is implemented, only 5% tax will be charged. It is expected that the rates of electricity will be reduced in many states.
These daily necessities will be cheap.
- Things such as soap, toothpaste and hair oil will be included in the slab by 18%. These things were taxed at 22-24% till now.
Smaller cars can be expensive, luxury cars will be taxed.
- According to the current tax rate, small cars are levied by 5% tax and 14.5% VAT. Due to which the total due tax is 28%.
- If GST is implemented, then with a tax of 28%, small cars will have to pay a cess of up to 1-3%. As a result, the total tax on total small cars will come from 29% to 31%. In such cases, the cost of cars will increase, compensation by car companies can be increased by raising prices.
- Currently, cars of more than 1500 cc have been taxed from 5% to 44.5%.
- If GST is implemented, then these cars will be taxed about 43 per cent. Considering the decreasing tax, car companies can reduce prices.
- Cars are placed on a slab of 28%. At present, 30-32% tax is levied on cars. After implementing GST, 28% tax and 1% cess will be charged on small cars. Thus the total tax will be 29%.
- With 28% tax, additional 3% cess will be charged on medium segment cars. 15% cess will be charged on luxury cars.
There will be no effect on these items.
- Items used daily such as tea, coffee (instant), sugar are placed in a slab of 5% tax. Before that, it seemed to be doing the same. Therefore there is no hope of any effect on this.
On the remaining items
- The tax will be charged in this way.
- On July 1, the dessert will also have 5% tax.
- AC and fridge are placed on a slab of 28%.
- Life-shaving drugs were placed on the lowest 5% slab.
The new GST implementation by Prime Minister Narendra Modi has made a huge benefit to the nation and its people. With the prices remaining the same as before and has not affected the common people but has put an end to the corruption in the country and make it corruption free.