- No scope on rethinking on July 1 deadline: Arun Jaitley
- Low-cost transportation in railways is exempted from GST
- Erroneous reports in media about small and mid-size cars attracting more tax under GST, taxes on these goods are similar to what they were before, says Arun Jaitley
- Telecom, financial services to attract #GST of 18 per cent; 28% tax for race club, betting and cinema halls: FM
- Five per cent GST to be levied on cab aggregators like Ola and Uber, says Jaitley
- Mobile users will now have to shell out more money with govt taxing the telecom sector with 18%
- Telecom sector to be taxed at 18%
- Net effect of GST implantation won't be inflationary. Once input credits start, actual tax incidence will come down says Finance Minister Arun Jaitley
- Hotels and Lodges with tariffis ranging between 1000-2500 will have a tax of 12%, between 2500-5000 to have 18% tax
- Hotels and lodges with tariffs less Rs 1000 will be taxed at 5%
- Hope to take remaining decisions in the next meeting of GST Council on June 3, says Arun Jaitley
- Air-conditioners, refrigerators & washing machines will attract the peak rate of 28% in GST
- 5 Star restaurants to have luxury tax, says Finance Minister
- Restaurants with a turover of less than 50 lakh can go for a compensation of 5%, Non-ac 12%, with AC-18%
- GST bill is going to be consumer friendly. Healthcare and education to be exempted: FM
- A set of services were exempted at present. Most have been grandfathered and those exemptions will countinue, says Arun Jaitley
- Services will be taxed in four different slabs: 5%, 12%, standard rate of 18% and luxury rate of 28%
Finance Minister Arun Jaitley says to exempt healthcare and education from Goods and Services Tax
The GST rates on telecom, financial services have been fixed at 18%, while healthcare and education have been exempted from service tax on the second day of the GST Council meet in Srinagar. Decision is yet to be made on gold, silver and other goods.
The two-day GST Council meet is drawing a lot of interest, much like the annual budget, as the prices of many goods and services get determined. The GST Council on Thursday made good progress and categorised 80 to 90 per cent goods and services under the four tax slabs stipulated under the GST Act.
The fitment of rates has brought good news for the middle class as essential commodities have been placed in the lowest tax bracket, while foodgrains have been completely exempted. This means the prices of commodities such as rice, dal, sugar, will go down from July 1 when the GST comes into effect. However, those who were planning to buy a new car could be forced pay more after July 1 as most vehicles fall in the higher tax basket.
Here's how the GST will affect the current prices of different commodities:
Daily use products
Milk and curd will continue to be exempt from taxation once the GST is effective. Sweets will attract 5 per cent tax under the GST.
Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 per cent, almost the same as under the current tax structure.
Cereals will be in exempt list. But what is to be done with packaged and branded food that has to be separately decided today.
Prices of food grains, especially wheat and rice, will come down as they will be exempt from the GST. Currently, some states levy VAT on them.
Food grains and common-use products like hair oil, soaps and toothpaste as also electricity will cost less from July 1. These items at present attract 22-24 per cent tax through a combination of central and state government levies.
The GST Council put aerated drinks in the 28 per cent bracket.
Electricity and electrical appliances
The GST tax on coal has been brought down to 5 per cent from the current tax incidence of 11.69 per cent, thereby making electricity generation cheaper. Besides, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.
ACs and refrigerators will fall in the 28 per cent tax slab while life-saving drugs have been kept at 5 per cent rate.
All capital goods and all industrial intermediaries would attract 18 per cent tax instead of 28 per cent.
On gold, states demanded a 4 per cent tax even though the rate is not among the 5, 12, 18 and 28 per cent approved bands.
The GST Council agreed to impose cess on luxury goods over and above the peak tax rate of 28 per cent.
Large cars with engine greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15 per cent.
Motorcycles with engine of more than 350 cc will attract 3 per cent cess and an equal amount of levy will be applying to aircrafts for personal use and yachts.
Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 per cent plus Rs 1,591 per 1000 sticks.
For cigars, a hefty levy of 21 per cent or Rs 4,170 per 1000 sticks, whichever is higher, would be levied.
Branded gutkha will be slapped with a cess of 72 per cent, while smoking mixtures for pipes and cigarettes will attract a levy 290 per cent.
Tax rates for bidis will be decided today, along with gold, footwear and branded items.