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19
May 2017
 |
G.S.T (The Total Investment & Insurance
Solutions)
With
the Goods and Services Tax (GST) Council deciding the tax rate on 1,211 goods
on Thursday, there is cheer for the common man as 81 per cent of the goods are
below 18 per cent, though people will have to shell out more even for small
segment cars with additional cess levied on them. The Total Investment & Insurance Solutions
Milk,
eggs, salt, fresh vegetables, fruits, contraceptives, organic manure, earthen
pots, coconut, prasadam supplied by religious places like temples, mosques,
churches, gurudwaras and dargahs have been exempted under GST. The Total Investment & Insurance Solutions
Live
animals, fruit juices and meat will call for a 12 per cent tax while fish has
been put in the 5 per cent tax rate. The Total
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Butter
and cheese have been placed under the 12 per cent tax rate and condensed milk
under 18 per cent. The Total Investment
& Insurance Solutions
Beverages
such as coffee (not instant), tea and groundnut, coal, hand pumps will attract
5 per cent tax under GST. The Total
Investment & Insurance Solutions
While
jaggery is exempt under GST, cane sugar and beet sugar are in the 5 per cent
tax slab. Bio gas plant, wind mills and kerosene lantern will also be under the
5 per cent tax rate.
Mobile
phones, fountain pen ink, tooth powder, incense sticks, feeding bottles,
Braille paper, children's colouring books, umbrellas, pencil sharpeners,
tractors, bicycles, contact lenses, spectacle lenses, utensils, sports goods,
fishing rods, combs, pencils and hand paintings have been placed under the 12
per cent tax rate under GST.
Bindi,
vermilion, glass bangles, handlooms, hearing aids and handmade musical
instruments have also been exempt under GST. A total of 7 per cent of items
have been kept zero rated.
The
goods which will fall under 18 per cent tax rate include helmets, LPG stoves,
nuclear reactors, clocks, military weapons, electronic toys and plastic
buttons.
The
items which have been put in the highest tax slab of 28 per cent include
aerated drinks, perfumes, after-shave lotions, deodarants, clothing of furskin,
razor blades, cars, revolvers, pistols, The Total Investment & Insurance Solutions
More
than 200 products appear in the 28 per cent tax slab.
"Ideally,
few products should have been put in 28 per cent bracket and 18 per cent should
have been a miscellaneous schedule (to cover all balance products). The
temptation of putting more products under 28 per cent bracket will certainly
complicate the Indian GST structure," GST expert Pritam Mahure told . The Total Investment & Insurance Solutions
Compensation
cess: 55 products will attract compensation cess.
The
cess on small cars ranges from 1-3 per cent, 3 per cent on motorcycles with 350
cc engine, personal aircraft and yachts while mid-segment and large cars will
attract a cess of 15 per cent.
All
goods, other than pan masala containing tobacco 'gutka' will have to bear a
cess of 89 per cent while tobacco and tobacco products will call for a cess in
the range of 12.5-290 per cent. Cess of 5 per cent has been levied on
cigarettes and 60 per cent on pan masala. Aerated drinks will attract a cess of
12 per cent. The Total Investment & Insurance
Solutions
Mahure
says that it is expected that a few classification disputes may continue like
whether groundnut chikki should be classified as 'sweetmeat' attracting 5 per
cent GST rate or sugar confectionery attracting 18 per cent GST rate. The Total Investment & Insurance Solutions
Now,
the manufacturers/traders will have to quantify the impact of the GST rates on
their product prices and update their tax masters/registers with these rates.
This is a complex exercise for traders who are not very conversant with tariff
codes and classification, he added.
The
rate structure for the remaining goods -- bidi wrapper leaves, biscuits, bidis,
textiles, footwear, natural or cultured pearls, precious or semi-precious
stones, precious metals, imitation jewellery, power driven agricultural,
horticultural, forestry, poultry keeping or bee-keeping machinery and
harvesting machinery is expected to be decided on Friday in the GST Council's
meeting on the second day in Srinagar.The
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