Blog By mariam | 26-07-19
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The Goods and Services Tax (GST) has been one of the key things that has caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slab.
Also the government categorised 1211 items under various tax slabs. Here is a low-down on the tax slab these items would attract.
Gold and rough diamonds do not fall under the current rate slab ambit and will be taxed at 3% and 0.25% respectively.
Nobody is quite sure whether prices will rise, fall or remain the same after GST, which partly explains the bang into to drain out old stocks at heavy price markdowns.
Most electronic gadgets, for example, have been placed in the 28% GST slab, marginally higher than the current effective tax of about 27% to 15% local VAT (value added tax) plus around 12% central excise duty.
Prices for most groceries, household and personal care products will remain unchanged for at least 6-8 weeks after the goods and services tax is put in place on July 1.
Companies aren't too sure their cost of operations like Several products including cookies, toothpastes, soaps and hair oils will be taxed at 18% under GST. Compared with about 22% in the current indirect tax structure of excise duty and value-added tax. However, detergents, shampoos and skincare products will attract a higher 28% duty.
Telecom GST rate is 18% and existing rate is 15%.
Works Contracts GST 12 and existing rate is 15% there is also Non AC/ alcohol-serving restaurants GST rate is 12% and existing rate is 18.5%. AC/ Alcohol- serving restaurants GST 18% Existing rate is 22%. Lastly we have 5 star restaurants also their GST rate is 28% and existing rate is 18%.
There is lot more where we need to know the remaining rates check out ahead
Sugar under GST is 5% and current is also the same as 5%. Cooking oil is 5% and existing rate will 5-6% Even Preserved Vegetables under GST price is 18% and current is not yet given for few weeks.