GST Council has fixed four-tier GST structure in Nov 2016 and it is expected to be rolled out from April 2017.
The rate structure is 5%, 12%, 18% and 28% with lower rates for essential items and highest for luxury items.
GST 0% Tax – Some essential items including food grains, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.
GST 5% Tax – mass consumption items such as edible spices, tea, coffee, mustard oil will fall under this tax slab.
GST 12% Tax – Process food items such as bread, cheese, readymade meals, milk, Computers will fall under this tax slab.
GST 18% Tax – Soaps, Oils, shaving sticks, toothpaste, refrigerators, smart phones
GST 28% Tax – Most white goods, like washing machines, air conditioners, will be taxed at 28 percent (with riders).
GST 28% Tax + Cess – Luxury cars, tobacco, pan masala and aerated drinks would also be levied with an additional cess on top of the highest tax rate. With cess, the overall tax will be between 40 % and 65 %
6) There has been no consensus yet on tax rate for gold.
[xyz-ihs snippet=”ad1″]