GST Council Decides Tax Rates For 1,211 Items, Except Gold

ShadowCozy

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posted on 7 years ago — updated on 1 second ago

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The Goods and Services Tax (GST) Council on Thursday decided the tax rates for 1,211 items, a majority kept at 18 percent, though the rates on gold and beedi remained undecided.

Revenue Secretary Hasmukh Adhia said that an overwhelming 81 percent of items will attract tax of 18 percent or below. Only 19 percent of items will be taxed at the highest rate of 28 per cent, he said.

However, the fitment of packed and branded food is yet to be decided.

Jaitley said the rates on the remaining items will be decided in the Council's meeting on Friday.ALSOI READ: GST May Replace 15 Indirect Taxes from July 1. Here's How

"In the overall basket there will be a reduction... but because of greater efficiency and less tax evasion there will be revenue buoyancy and tax collection will go up," he said.

Items like hair oil, toothpaste and soaps, which are now taxed at 28 percent, will be taxed at 18 percent under GST.

Sugar, tea, coffee (except instant), edible oil and coal will attract 5 percent tax.