GST Rates for Goods
Highlights of Latest GST Rates
- Nearly 81 per cent of the items will fall under below-18 per cent GST rate slabs
- Only 19 per cent of the goods will be taxed above 18 per cent.
- Sugar, Tea, Coffee (except Instant) and edible oil to fall under 5 per cent slab
- While cereals, milk to be part of exempt list under GST
- Indians sweets or mithai in 5 per cent slab
- ACs and refrigerators will fall in the 28 per cent tax slab while life-saving drugs have been kept at 5 per cent rate.
- Aerated drinks and cars will be in the 28 per cent bracket
What is so Good About New GST & GST Rates For Business ?
Long delivery time of goods by transporters to be reduced , for instance, more than 20,000 truck drivers wait in queues up to three kilometers (1.8 miles) long to pay an entry fee at the New Delhi checkpoints, with food rotting, tempers fraying and costs rising. In another change, the GST will apply to goods at the point of consumption, rather than where they are produced.
That will reduce the cascading effect of taxes, allowing producers to easily claim credits and minimising the opportunity for corruption.
What classification of tax rate and impact ?
The tax will comprise four basic rates: 5 percent, 12 percent, 18 percent and 28 percent. While officials are yet to reveal final details of what will fall into each bracket, Finance Minister Arun Jaitley has said 50 percent of items in the retail inflation basket won’t be taxed in order to protect consumers from price rises on basics such as food grains. As well as those four rates, there’ll be higher rates for tobacco products (65 percent) and luxury goods.