GST rates: Cooking gas, tea, mustard oil, noodles to become cheaper after new tax roll out

As the government gets ready for the roll out of GST on July 1, the Finance Ministry has said a number of household products such as cooking gas, note books, aluminium foils, insulin, agarbatti would become cheaper.

Other products on which the present combined indirect tax rates are higher include milk powder, curd, butter milk, Unbranded Natural Honey, dairy spreads, cheese, spices, tea, wheat, rice, flour, and spices.

The present tax rates on these products levied by the Centre and states are higher than the GST rates, which would result in the drop in prices.   

The current taxes are levied on account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, among others.

After the GST comes into effect from July 1, Central and State governments will be jointly responsible for fixation of the rate following the approval from the GST Council.

GST rates are also lower on present tax on groundnut oil, palm oil, sunflower oil, coconut oil, mustard oil, sugar, palmyra jaggery, sugar confectionery, pasta, spaghetti, macaroni, noodles, fruit and vegetable items, several food products, pickle, murabba, chutney, sweetmeats, ketchup and sauces.

The finance ministry today 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 useand 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.

The Council is scheduled to meet on June 18 to finalise e-way rules and anti-profiteering norms.

(With inputs from PTI)