On Saturday, another major initiative has been taken in the direction of implementing the goods and services tax (GST) system from July 1. GST Council has decided to impose GST at the rate of three percent on gold. GST will be installed at the rate of 5% on the slippers and shoes of Rs.500 / – for the use of the general public, whereas biscuits are kept in the category of 18% GST.
In the 15th meeting of the GST Council chaired by Finance Minister Arun Jaitley, GST rates were also decided for gold, slippers, shoes, biscuits, threads, agricultural machinery, apparel and some other items, including uncut diamonds. Jaitley also said that the Council also apprised of the implementation of the GST system and the necessary information technology preparedness for its success.
3 percent GST on gold
Arun Jaitley said, “At present, 1 per cent of VAT is levied on gold and 1 per cent VAT is being levied by the States. Keeping these rates in mind, the Council has decided to impose a consensus on 3% tax on gold and gold jewelry after a lot of deliberation. ” He said that besides the refined diamonds, a marginal tax of 0.25 per cent has been imposed so that transactions can be kept accountable.
28 percent tax on beedi
Under GST, Beedi will be charged 28 per cent tax. While Bidi leaves or ‘tendu’ has been levied 18 per cent, Jaitley said, ‘No cess will be levied on beedi or beedi leaves but cigarettes will be cessed.’
5 percent tax on cotton clothes
The Finance Minister said that the cost of redeemed clothes, which will be less than Rs. 1,000, will be taxed at 5%. More than this, the cost of garments will be 12 percent GST. Cotton fabrics and cotton yarn will be kept in the range of 5 percent. Under the GST, five percent tax will be charged on the solar panel. At the same time, taxing food products will be taxed at five percent rate. The next meeting of the GST Council will be on June 11.
GST fixed up to 18 percent on footwear
On the implementation of the Goods and Services Tax (GST) system from July 1 in the country, GST will be charged at the rate of 5 percent on the shoes and slippers with a price of less than Rs 500, while GST will be levied at a rate of 18 percent on the footwear of the higher price. Presently, slippers and shoes at a price of Rs 500-1000 are charged 6 per cent excise duty, besides the state governments also charge VAT. Biscuits will be charged GST at 18 percent rate.
Jaitley chaired meeting
Finance Minister Arun Jaitley said that in the GST Council meeting under his chairmanship, tax rates for six items, including footwear, clothes, biscuits and gold, were decided. In the 15th meeting on Saturday, the Council discussed taxation on the rest of the items. Earlier in the day, he approved pending rules, including all rules regarding filing of returns and going through changes. GST will comprise 16 different taxes and this will make the entire country a single market. GST will be applicable from July 1.
Significantly, the GST Council has firmed up 1,200 items and 500 services in the tax structure of 5, 12, 18 and 28 percent in the same month. Finance Minister Arun Jaitley gave this information on Saturday after the GST Council meeting ended. With this, the GST Council completed the work of keeping all the goods and services under four slabs of GST.