GST Rates- A quick look!
MAY 19, 2017
By Prabhat Ranjan, CA
THE most popular questions about GST were (1) Date of GST and (2) Rates under GST. Out of the two, on 18th May 2017 i.e. first day of the two days scheduled meeting of the GST council in Srinagar under the chairmanship of Shri Arun Jaitley, the council agreed on the fitment of almost 12,000 commodities in the various tax slabs under the new Indirect Tax regime which seems to be a reality roll on 1st July 2017.
Also the Council cleared GST rules pertaining to composition scheme, valuation, input tax credit, invoice, payment, refund and registration, along with relevant forms and formats.
The Council also finalized the rate of Compensation Cess on various goods. GST rates for the balance goods, which include biscuits, textile, footwear, Jewellery, precious metals etc. are expected to be discussed and finalized today i.e. 19th May 2017. The Council will also finalize the rate of GST on services and the list of exemptions on 19th May 2017.
Interesting to note that out of the total items for which rates are finalized on 18th May, approx. 81% of the items attract GST rate of 18% or less and balance 19% attract @ 28%.
However, the Council has ensured that a common person right from the moment he starts his day and ends with it spends GST @ 18% or 28%.
Nonetheless, the Finance Minister indicated that the Council has attempted to keep the tax burden at the minimum on the mass consumption items. Some of the key highlights of the rate fitment are as below:
Sr. No.
|
Key Header
|
Chapter of GST Rate Schedule
|
0%
|
5%
|
12%
|
18%
|
28%
|
1
|
Dairy Products
|
Chapter 4
|
Fresh milk and pasteurised milk, Butter Milk, Curd, Lassi, Chena or paneer
|
-
|
Cheese and Ghee
|
-
|
|
2
|
Vegetables
|
Chapter 7 & 8
|
Fresh Vegetable
|
Frozen vegetables
|
Dry Fruits
|
|
|
3
|
Tea and Coffee
|
Chapter 9
|
Coffee beans and unprocessed green leaves
|
Tea, Coffee
|
|
|
|
4
|
Cocoa
|
Chapter 18
|
Cocoa beans, shells, husks etc.
|
|
|
|
Cocoa powder, butter
|
5
|
Cereals and Milk Products
|
Chapter 19
|
Bread
|
Pizza Bread
|
|
Infant use preparations like milk powder for infants commonly known as "IMF category", corn flakes etc.
|
|
6
|
Fruit / vegetable juices
|
Chapter 20
|
|
|
All fruit and vegetable juices
|
|
|
7
|
Miscl Edible preparation
|
Chapter 21
|
|
|
Namkeens, Bhujia, mixture etc.
|
Tea bags, sauces, soups, ice creams, instant food mixes, diabetic foods, soft drink concentrates supari etc.
|
Protein concentrates, compound preparations for making non-alcoholic beverages.
|
8
|
Waters and beverages
|
|
|
|
|
Mineral and aerated water
|
Aerated water containing added sugar i.e. soft -drinks
|
9
|
Tobacco
|
Chapter 24
|
|
Tobacco leaves
|
|
|
Tobacco
|
10
|
Salt and Cement
|
Chapter 25
|
Salt
|
|
|
|
Cement
|
11
|
Gases
|
Chapter 27
|
|
LPG, Kerosene
|
Bio-Gas
|
|
|
12
|
Pharma Products
|
Chapter 30
|
Contraceptives
|
Life-saving drugs and formulations [covered under List 1, 3 and 4 of Notification No. 12/2012 - Customs (dated 17th March 2012)
|
All other medicines (including Ayurvedic, Unani and Homeopathy)
|
|
|
13
|
Fertilisers
|
Chapter 31
|
Organic Manure
|
|
|
|
|
14
|
Paints
|
Chapter 32
|
|
|
|
|
Paints
|
15
|
Cosmetics
|
Chapter 33
|
Kumkum, Bindi, Sindur, Alta
|
|
Tooth-powder
|
Hair Oil, Tooth-paste
|
Perfumes, other cosmetics including Shampoo, creams etc.
|
16
|
X-Ray films
|
Chapter 37
|
|
|
X-ray films for medical use
|
Other uses
|
|
17
|
Printing Materials
|
Chapter 49
|
Newspapers, Journals whether or not containing advertisement
|
Brochures, leaflets
|
Plans and Drawings
|
|
|
18
|
Irons and Steel
|
Chapter 72
|
|
|
|
All goods
|
|
19
|
Medical and Surgical Instruments
|
Chapter 90
|
|
Coronary Stents with cardiac catheters
|
Blood Glucose Monitoring system (Glucometers) and test strips.
|
|
|
Does the declaration of rates on the first day of the Council meet signal that GST is just round the corner to be rolled-out from July 1 2017 and September may remain as a myth? Indeed an interesting and challenging time ahead!!
(The author is a Chartered Accountant & Company Secretary and works with a leading Pharma company and the views expressed in this article are strictly his personal views)
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