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NEW DELHI: The GST Council today decided to tax gold at 3 per cent, footwear below Rs 500 at 5 per cent and biscuits at 18 per cent under the Goods and Services Tax, which will be rolled out from July 1.

The Council, chaired by Finance Minister Arun Jaitley, at its 15th meeting also decided on rates of yarns, agriculture machinery, apparels and rough diamonds among others.

The council, Jaitey said, will again meet on June 11, before the roll out of the new indirect tax regime.

The all powerful council has also finalised the GST rules regarding transition and return filings.

Jaitley said the council was also apprised of the IT preparedness which is necessary for the successful roll out of the GST.

“GSTN made a detailed presentation on the amount of work done and IT preparedness,” he told reporters after the meeting.

As regards readymade garments, they will attract a levy of 12 per cent. Solar panels will be taxed at 5 per cent under GST.

Tendu leaves and bidis would be taxed at the rate of 18 per cent and 28 per cent respectively, the finance minister said, adding that there will be no cess on bidis.

On the other hand, rough diamonds will attract a levy of 0.25 per cent.

For footwear and textiles, Jaitley said that a major concession has been given and the items being used by the common man will be taxed at low rates.

The GST Council has already fitted over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 per cent last month.

GST will subsume all major levies including excise, service tax and VAT, unifying 16 different taxes, and make India a single market.

These are the rates:

Biscuits (All catogories): 18%

Footwear: Below Rs 500: 5 %

Footwear costing more than Rs 500: 18 %

Textiles:

Jute: Nil

Apparel below Rs 1000: 5 %

Above Rs 1000: 12 %

Bidis : 28 %. No cess

Bidi Patta : 18 %

Gold: 3 %

Rough Diamonds : 0.5 %

Agri machinery will be taxed at 5%-12% depending on the category

Packaged food items sold under registered trademarks will be taxed at 5%

The GST Council also discussed the implementation of anti-profiteering clause. The GST Council also cleared the pending rules, including transition provisions and returns, with all the states agreeing to July 1 roll out of the Goods and Services Tax.

The next GST Council meet is scheduled for 11 June in Delhi.

 

source:-http://economictimes.indiatimes.com/news/economy/policy/gst-council-fixes-tax-rates-for-gold-textiles-footwear/articleshow/58977151.cms

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