GST rates announced; milk, cereals to be exempted

The meeting of the 14th GST Council was held in Srinagar marking participation of Union Finance Minister, Mr Arun Jaitley, Finance Ministers of all the states, Finance Secretaries and other taxation officials from the states and union territories.
  • The Goods and Services (GST) Council has agreed on the fitment of almost all commodities in the various tax slabs under the new indirect regime to be rolled out on July 1.
  • Milk, cereals (unpackaged and unbranded), and jaggery will be exempt from any GST, while sugar, tea, coffee (except instant), and edible oil will be taxed at 5%.
  • Common use items such as soap, toothpaste, and hair oil, which currently attract a tax rate of 22-24%, will be taxed at 18%. Coal, which is currently taxed at 11.7%, will attract a GST rate of 5%.
  • Consumer durables will come under the 28% tax bracket, down from the current 30-32% rate.
  • Capital goods and industrial intermediaries will be taxed at 18%.
  • Small petrol and diesel cars will be taxed at 28% with small petrol cars attracting a cess of 1% and small diesel cars 3%.
  • Luxury cars will attract a 15% cess in addition to 28% GST.
  • 350 cc bikes will attract a cess of 3%.
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