Note books, domestic LPG, aluminium foils, insulin, agarbatti and a large number of daily use household products will become cheaper under the GST regime set to be rolled out from July 1.
In a majority of supplies of goods, the tax incidence approved by the GST council is much lower than the present combined indirect tax rates levied by the Centre and states, the finance ministry said in a statement.
The current taxes are levied on account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, value-added tax (VAT) rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of central sales tax (CST), Octroi, entry tax, among others.
The new indirect tax regime is to come into effect from July 1, wherein fixation of GST rates on the supplies is joint responsibility of the central and state governments after the approval from the GST council.
Some of the items where GST incidence is lower than the present combined indirect tax rates are milk powder, curd, butter milk, unbranded natural honey, dairy spreads, cheese, spices, tea, wheat, rice, flour and spices.
The new tax is also lower on groundnut, palm, sunflower, coconut and mustard oils, sugar, palmyra jaggery, sugar confectionery, pasta, spaghetti, macaroni, noodles, fruit and vegetable items, several food items, pickle, murabba, chutney, sweetmeats, ketchup and sauces.
The finance ministry on Thursday released a list of supplies wherein GST incidence will be lower than the current taxes.
The list also includes toppings, spreads and sauces, instant food mixes, mineral water, ice, cement, coal, kerosene PDS, LPG domestic, insulin, agarbatti, tooth powder, hair oil, toothpaste, kajal, soap, X-ray films for medical use and diagnostic kits and reagents.
The new tax is also lower on plastic tarpaulin, school bag, exercise books and note books, kites, children’s picture, drawing or colouring books, silk and woollen fabrics, certain types of cotton fabrics and specific readymade garments, along with footwear of Rs 500, and helmet. Fly ash bricks and fly ash blocks, glasses for corrective spectacles, LPG stove, spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, fixed speed diesel engines of power not exceeding 15HP, tractor rear tyres and tractor rear tyre tubes, and weighing machinery.
The GST council, comprising state finance ministers and headed by Union finance minister, had decided on the GST rates on all goods and services during May and June.
