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Breaking News: GST rates released in India - Checkout what gets cheaper and what gets costlier

May 22, 2017

Prices will change after the Goods and Services Tax (GST) is implemented from July 1, 2017. While the GST rates released by the government do not hurl any major surprises for most products, it is still early to comment on the overall effect of the new tax law. The GST council, the body responsible for coming out with a set of rates, has finalized tax slabs for goods of consumption.

While 7% items are exempt, 14% are in the lowest bracket of 5%. Around 17% items are in 12% tax bracket, 43% in 18% and 19% in the top tax bracket of 28%. This translates into the fact that a majority of the items will have 18% or less GST.

No GST tax slab

Foodgrains, milk and other articles of daily use have been exempted from taxation under the GST regime.

foodgrains | gur | milk | eggs | curd | lassi | unpacked paneer | honey | vegetables | fruits | atta | besan | maida | vegetable oil | common salt | contraceptive | bread | stamp | books | bangles

5% GST tax slab

Items of daily use: sugar | tea | coffee | edible oil | coal | milk powder for babies | paneer | newsprint | LPG | kerosene | spices | juice | medicines

12% GST tax slab

Non-essential items: butter | ghee | mobile phones | agarbatti | mixtures | ayurvedic medicines | tooth powder | sewing machine

18% GST tax slab

Other items: hair oil | soap | toothpaste | corn flakes | jams | ice-cream | toilet paper | iron and steel | mineral water | camera |

28% GST tax slab

Luxury goods or health hazards: consumer durables | cars | cement | chewing gum | custard powder | pan masala | perfume | shampoo | cosmetics | fireworks | motorcycles | paint | deodorant | hair dye | washing machine | vacuum cleaner | dish washer

What gets Cheaper

There is little doubt that foodgrains, cereals, and milk will cost less from July 1. Currently, many states charge VAT on food grains including wheat and rice and milk products. However, sweets will attract 5% GST. Common use items hair oil, soaps and toothpaste will be charged at 18 per cent. Sugar, tea, coffee and edible oil will attract 5%.

This article was first published on LinkedIn by Muqbil Ahmar

Tags: Benefits of GST, GST, GST 2017, GST Bill, GST Council, GST Impact, GST Implementation, GST India, GST Latest News, GST Law, GST News, GST Rates, GST Reform, GST Tax Structure, Impact of GST

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