After the long and tortuous path it has taken to become a legislation, the Goods and Services Tax is finally at our doorstep. It's gonna make things easier as the rates declared are going to be the same all across India. The states and the centre had bargained hard to get the best deal during the heated negotiations that had ensued.
Many of us might ponder as to why the GST sounds complicated when many countries in the world have adopted a tax regime that's very less complicated. Probably we, Indians have a penchant for making things complicated!
Let's now try to understand the list of goods and services that come under the varying tax rates of the new regime wef 01 Jul..
(a) Tax free.
* Bindi - Sindoor. * Fresh meat.
* Stamps. * Raw fish.
* Judicial papers. * Raw chicken.
* Printed books. * Eggs * Newspapers. * Fruits, vegetables.
* Glass bangles. * Salt, buttermilk.
* Handloom. * Milk, bread.
* Metro travel * Flour, besan.
* Local train. * Honey, curd.
* Economy hotels(Tariff below Rs.1,000/-).
(b) Tax @ 5%
* Fish millet. * Transport services.
* Cream, milk powder. * Railways.
* Frozen vegetables. * Flights.
* Pizza bread, rusk. * Taxi services - Ola, Uber.
* Sabudana. * Small restaurants(Below Rs.50 lakhs
* Tea, coffee, spices. turn over)
* Medicines, stent. * Bio gas plant
* Cane, beet sugar. * Windmills.
* Lifeboats.
* Kerosene, coal.
(c) Tax @ 12%.
* Flight ticket(Business class).
* Non a/c hotels.
* Fertilisers.
* Work contracts.
(d) Tax @ 18%.
* Flavoured sugar. * Helmets.
* Pasta. * Tissues.
* Cornflakes. * Napkins.
* Pastries and cakes. * Envelopes.
* Preserved vegetables. * Note books.
* Jams and sauces. * Steel products.
* Soups. * Printed circuits.
* Instant food mixes. * Camera.
* Ice cream. * Speakers.
* Mineral water. * Monitors.
* LPG stoves. * Electronic toys.
* Branded garments. * IT services.
* A/c hotels with liquor licence. * Financial services.
* Telecom services.
(e) Tax @ 28%.
* Chewing gum. * Sunscreen.
* Chocolate. * Wallpaper.
* Waffles. * Tiles.
* Wafers. * Water heater.
* Pan masala. * Dishwasher.
* Cold drinks. * Weighing machine.
* Paint. * Washing machine.
* Shaving creams. * ATM.
* Deodorants. * Vacuum cleaner.
* After shaves. * Shavers hair clippers.
* Shampoo. * Automobiles.
* Hair dye. * Motorcycles.
* 5 star hotels. * Movie tickets.
* Race club betting.
Tailpiece.
Hope the country's uniform tax regime with regard to the indirect taxes is gonna get our economy moving. And don't be under the impression that the lakhs of toll booths will disappear from 01 Jul; they will go away over a period!
Many of us might ponder as to why the GST sounds complicated when many countries in the world have adopted a tax regime that's very less complicated. Probably we, Indians have a penchant for making things complicated!
Let's now try to understand the list of goods and services that come under the varying tax rates of the new regime wef 01 Jul..
(a) Tax free.
* Bindi - Sindoor. * Fresh meat.
* Stamps. * Raw fish.
* Judicial papers. * Raw chicken.
* Printed books. * Eggs * Newspapers. * Fruits, vegetables.
* Glass bangles. * Salt, buttermilk.
* Handloom. * Milk, bread.
* Metro travel * Flour, besan.
* Local train. * Honey, curd.
* Economy hotels(Tariff below Rs.1,000/-).
(b) Tax @ 5%
* Fish millet. * Transport services.
* Cream, milk powder. * Railways.
* Frozen vegetables. * Flights.
* Pizza bread, rusk. * Taxi services - Ola, Uber.
* Sabudana. * Small restaurants(Below Rs.50 lakhs
* Tea, coffee, spices. turn over)
* Medicines, stent. * Bio gas plant
* Cane, beet sugar. * Windmills.
* Lifeboats.
* Kerosene, coal.
(c) Tax @ 12%.
* Flight ticket(Business class).
* Non a/c hotels.
* Fertilisers.
* Work contracts.
(d) Tax @ 18%.
* Flavoured sugar. * Helmets.
* Pasta. * Tissues.
* Cornflakes. * Napkins.
* Pastries and cakes. * Envelopes.
* Preserved vegetables. * Note books.
* Jams and sauces. * Steel products.
* Soups. * Printed circuits.
* Instant food mixes. * Camera.
* Ice cream. * Speakers.
* Mineral water. * Monitors.
* LPG stoves. * Electronic toys.
* Branded garments. * IT services.
* A/c hotels with liquor licence. * Financial services.
* Telecom services.
(e) Tax @ 28%.
* Chewing gum. * Sunscreen.
* Chocolate. * Wallpaper.
* Waffles. * Tiles.
* Wafers. * Water heater.
* Pan masala. * Dishwasher.
* Cold drinks. * Weighing machine.
* Paint. * Washing machine.
* Shaving creams. * ATM.
* Deodorants. * Vacuum cleaner.
* After shaves. * Shavers hair clippers.
* Shampoo. * Automobiles.
* Hair dye. * Motorcycles.
* 5 star hotels. * Movie tickets.
* Race club betting.
Tailpiece.
Hope the country's uniform tax regime with regard to the indirect taxes is gonna get our economy moving. And don't be under the impression that the lakhs of toll booths will disappear from 01 Jul; they will go away over a period!
No comments:
Post a Comment