Rates for 6 items to be finalised; no levy on milk, bread, cereals

Finance Minister Arun Jaitley said that if rates for all items is not decided in this fourteenth meeting of the Council, then another meeting will be called soon to complete the fitment exercise.

Written by Aanchal Magazine | Srinagar | Published:May 19, 2017 4:10 am
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The Goods and Services Tax (GST) Council agreed upon fitment of various goods in the tax slabs of zero, 5,12,18 and 28 per cent on the first day of its two-day meeting. No GST will be levied on prasadam, cereals, kumkum/bindi and contraceptives, among others, while a 28 per cent GST will be levied on items such as pan masala, motor vehicles, molasses, chewing gums and chocolates containing cocoa.

Most processed food items will attract a GST rate of 5 per cent, including that on frozen fish, skimmed milk powder, cane sugar and sweetmeats (mithai), the list of item-wise tax rates released by the Central Board of Excise and and Customs showed.

Condensed milk, pastries and cakes, agarbattis, mobile phones, electrically operated vehicles will attract 12 per cent rate under the proposed indirect tax regime. While LPG for household domestic consumers will attract 5 per cent tax, butter and cheese have been placed in the 12 per cent category. Tax rates on six items — beedi, biscuits, textiles, footwear, precious metals and power-driven agricultural machinery — are yet to be finalised and are likely to be taken up for discussion on the second day of the GST Council meeting on Friday.

Finance Minister Arun Jaitley said that if rates for all items is not decided in this fourteenth meeting of the Council, then another meeting will be called soon to complete the fitment exercise.

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