New Rates under GST have been declared. Sure benefit can be seen in case of Agro and allied products including fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread manufacturers and consumers as they are exempted. Services of hotels and lodges under tarriff Rs. 1000 is also expemted. Releive is also sought as Transport services (Railways, air transport), small restraurants were put under 5% catgory. The petroleum was declared exempted in earlier edition of declarations.
Appearals below 1000 are taxed 5% while above are taxed 12%. Footwears below Rs. 500 are taxed @5% and above @ 18%. They are also partial benefitcieries.Packaged food will benefit as packaged food items, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices have been put in 5% basket. Transportation would be cheaper by air and Train as it is put in 5% bracket and Business class Air travel is put under 12% which is below current 15%. Non-AC hotels have also been put in 12% bracket.
But, the AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will become exensive as they have been put under 18% bracket. This is quite surprising that Financial services have been made expensive, when the government is trying to enhance financial inclusiveness.
5Star will be chrged 28% and interestingly, Cinema will attract 28%.
No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.
Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST.
Items such as fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 %,
Transport services (Railways, air transport), small restraurants.
Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones will be under 12 % tax slab.
Non-AC hotels, business class air ticket, fertilisers, Work Contracts.
Most items are under this tax slab which include footwear costing more than Rs 500, Bidi Patta, Biscuits (All catogories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.
AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST.
Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use
5-star hotels, race club betting, cinema