gst tax india times - gstgovcoin

GST fixed on gold, diamond, footwear, others – IndiaTimes

 GST fixed on gold, diamond, footwear, others – IndiaTimes

gst tax india times - gstgovcoin

The GST (Goods and Services Tax) Council on Saturday fixed the goods and services tax on commodities like gold, footwear, biscuits and textile. GST on most goods were finalised last month. The tax incidence on bidi too was fixed, however, the GST on cigarettes is likely to be decided in the next council meeting slated for June 11.

For gold, the GST has been set at 3 per cent introducing a new tax slab, fairly in line with industry expectations that was appealing for 2 per cent. Last month, the GST Council finalised a four-tier structure for taxation of both goods and services at 5, 12, 18 and 28 per cent. According to sources, the proposal for gold was to put it in the 5 per cent slab. There was proposal keep the GST on gold between 2-5 per cent, Finance Minister Arun Jaitley said. Currently, gold is taxed around 2 per cent (1 per cent excise and 1 per cent VAT or value-added tax). However, some states charge a higher VAT.

Diamonds will also attract 3 per cent GST, while rough diamonds will have a tax levy of 0.25 per cent. Gems and jewellery have been put in the 3 per cent bracket as well.

The council decided to put bidis in the highest tax category at 28 per cent without any cess. Cigarettes will, however, attract cess, Jaitley clarified.

For footwear upto Rs 500, the council chaired by Jaitley fixed the rate at 5 per cent, and for footwear worth over Rs 500, the tax slab has been finalised at 18 per cent.

Biscuits will attract a GST of 18 per cent. Currently, 20.6 per cent is weighted average for low-priced biscuits, the Finance Minister said. Packaged food items under registered trademark will fall under the 5 per cent category.

GST of 12 per cent will be levied on readymade garments. However, apparel under Rs 1,000 will attract a 5 per cent levy. Yarn and fabric cotton will be under the 5 per cent tax slab, the council decided. Man made fibre will be taxed at 5 per cent, while synthetic fibre will attract an 18 per cent GST. Jute has been exempted from GST.

For agricultural machinery, the council has fixed the GST at 5 per cent.

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