GST Council Includes 1211 Items on its To-Do-List, Check out What’s Hot & What’s Not?

May 19, 2017

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The Center is all set to launch the much awaited GST (Goods and Service Tax) bill coming July. Starting from July 1^st, 2017, milk and curd will be tax free whereas food grains, toiletries and domestic commodities will turn affordable. This Thursday, the GST council included total 1211 items on their To-do-list. Out of these, the prices of total 1205 items have been finalized in a 2-day meeting in Srinagar, chaired by union finance minister Mr. Arun Jaitley.

Here’s all that you ought to know about the GST Bill.

How will the Government launch GST Bill?

Rather than imposing taxes on the production of finished goods, the government will enforce taxes on local consumption. Manufactured goods will be taxed, based on their requirement. Only VAT (Value Addition Tax) will be added under GST. It will be equally divided between the center and the state government.

GST Facts: The bill was passed by the Rajya Sabha on 3 August 2016, and the amended bill was passed by the Lok Sabha on 8 August 2016.

States that use a particular product in excess quantity will pay the SGST installment.

What Taxes will be Included under the GST?

Only custom duty and Central taxes (Additional excise duty, additional custom duty, service tax, special additional custom duty, cess) will be charged from customers. Additional state-level taxes, such as VAT, central sales tax, entertainment tax, entry tax, luxury tax, purchase tax, surcharge etc. will be eliminated from the delivery chain altogether.

Who will be benefitted by GST Taxes?

Consumer: Happy customers don’t have to pay 31% taxes on their purchase.
Traders: Traders will get input credit on previous taxes.
Government: Both the center and state will receive revenues. GST will evade the possibilities of tax theft and money laundering.
Finance experts & Bankers: Professional believe GST will boost Indian economy by 1.5% to 2% — a positive outcome for Indians.

How will GST Affect Producers and Big businesses?

All businessmen/manufacturers that have an annual turnover of more than 20 lakhs will have to register under the ‘Composition Scheme’. GST will be imposed on their entire turnover. In this case, local businesses limited to a single city or state will get maximum benefits. Small traders falling under the 20 lakh bracket will be benefited. The center has lowered tax brackets for north-east and special states.

Things that will Get Cheaper After GST Bill Implementation in July…

Check the new tax rates mentioned within the brackets ().

Cereals and food grains are cheaper now.

Food grains, cereals and their by-products like wheat, rice, other grains, flour, bread etc. (0% tax)
Pizza bread, rusk (5%)
Mixtures, Namkeen (5%)
Pasta, Noodles, Cakes, Pastry (18%)
Milk and dairy products (yogurt, flavored curd, cheese, lassi, buttermilk: No Taxes)
Baby milk food (5%)
Condensed milk (18%)
Fresh fruits & vegetable (No taxes)
Processed fruits & vegetables (5%)
Fruit & vegetable juices, milk drinks (12%)
Beverages like tea & coffee (5%)
Jellies, Jam (185%)
Sugar and confectionary (5%)
Flavored sugar (18%)
Bindi, vermillion (no taxes)
Incense stick (12%)
Toiletries like soap, washing gel, toothpaste etc. (18%)
Life-saving medicines (5%)
Pipes, cane, sheet, kitchenware (18%)
Coal, steel and electricity (5%)
Small cars (29%)

Things that will Turn More Expensive…

Sweets & Desserts (5%)
Soft Drinks (28%)
Bathroom accessories, floor covering, construction material (28%)
Ghee, butter, oil, cheese (12%)
Chewing gum (28%)
Makeup products like sunscreen lotion, shampoo, hair color, shaving cream, hair cream, deodorant (28%)
Mediocre and luxury cars (31 to 43%)

How will GST Affect Rajasthan in Particular?

Name	Previous Rates (%)	New Rates (%)
Sugar	0	5
Processed Oil	5.5	5
Tea	5.5	5
Coffee	14.5	5
Hair Oil	5.5	5
Medicines	5.5	5
AC-Fridge	27.5	28
Small Cars	27	29
Medium Cars	39	31
Luxury Cars	42	43