Tag: Arun Jaitley

GST Rates finalized

GST Rates finalized

The Union Finance Minister, Mr. Arun Jaitely and state finance ministers concluded a 2 day meeting at Srinagar finzalizing GST rates on 1211 items. The GST rates has been divided into 4 different categories of 5%, 12%, 18% and 28%. Of these 1211 items, a majority of 43% of items has been placed in the tax slab of 18%. A brief of all goods and services in different tax bracket is as follow:

Nil:

Goods: 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.

Services: Hotels and lodges with tariff below Rs 1,000 & Grandfathering service.

5%:

Goods: Fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent & lifeboats

Services: Transport services (Railways, air transport) & small restraurants.

12%:

Goods: 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.

Services: Non-AC hotels, business class air ticket, fertilisers & Work Contracts.

18%:

Goods: 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 & monitors.

Services: AC hotels that serve liquor, telecom services, IT services, branded garments  & financial services.

28%:

Goods: 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 & aircrafts for personal use.

Services: 5-star hotels, race club betting & cinema.

Apart from these, compensational cess will be leived on items like aerated drinks containing sugar, tobacco and tobacco products, cigarettes, coal and motor vehicles. The cess on motor vehicles is capped at 15%.

More details are available on the following links:

GST rates detailed PDF

Compensation cess detailed PDF

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Haryana assembly passes the state GST bill

Haryana assembly passes the state GST bill

Haryana state assembly passed the state GST bill on 4th May, 2017. With that, it becomes 8th state to pass the GST state bill. The Legislative Assembly of Telangana State was first state to pass the State GST Act on 9th April, 2017. Bihar State passed it on 24th April, 2017, Rajasthan Assembly on 26th April, 2017, that of Jharkhand on 27th April, 2017, Chhattisgarh Assembly on 28th April, 2017, that of Uttarakhand on 2nd May, 2017 and Madhya Pradesh Assembly passed it on 3rd May, 2017.

Earlier the GST Council had approved the model State GST (SGST) Bill in its 12th Meeting held on 16th March, 2017. The remaining States/UTs (having Legislative Assembly) are likely to pass the State GST Bill in their respective Assemblies before the end of this month, except one or two States which may pass the same in early next month.

The next GST Council meeting is scheduled to be held at Srinagar, J&K on 18th and 19th May, 2017. The Central Government has already informed that GST will be rolled-out from 1st July, 2017. The quick passage of the State GST Act by the different State Assemblies in a time bound manner shows the keenness on the part of the State Governments to ensure that implementation of the GST in letter and spirit is not further delayed and takes place from 1st July, 2017 as targeted by the Central Government.

First blog post

First blog post

Welcome all!!! Everything GST is a brand new blog for information, news and updates related to Goods and Service Tax. GST is a step taken by government to bring all different indirect taxes collected by central as well as state governments under a single umbrella. This blog would let you know all latest updates, news and information about implementation and operation of GST.