GST rules in place, first list of goods and rates is out.
By Team Legistify / 2017-05-20

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AIMING TO keep most items, especially those of mass consumption, at affordable prices, the states and the Centre evolved a consensus on the first day of the 14th Goods and Services Tax (GST) Council meeting on Thursday to keep 81 per cent of a total of 1,211 items at the modal tax rate of 18 per cent or below.

The Council also gave final approval to seven rules pertaining to registration, payment, refund, invoice debit, credit note, input tax credit, valuation, and composition scheme — essential prerequisites for the industry to gear up for the transition to GST. Two rules on transition provisions and returns have been sent for legal vetting.

Foodgrains, including cereals and jaggery, have been exempted with a zero per cent tax slab, while essential items of normal sugar, tea, coffee and edible oil have been placed in the 5 per cent tax slab. The GST on items such as toothpaste, soap and hair oil will be 18 per cent as against the present total tax incidence of 28 per cent and above.

Coming down hard on tobacco, cigarettes and cars, the Council decided on the cess rates for demerit and luxury items. A cess of 204 per cent has been proposed for pan masala gutkha; cigarettes not exceeding 65 mm will attract a cess of 5 per cent plus Rs 1,591 per thousand.

Small petrol cars with an engine capacity of less than 1200 cc will attract 1 per cent cess, and those with a diesel engine capacity of less than 1500 cc will attract 3 per cent cess.

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