New Delhi, May 19: From July 1, prices of items will change as the Goods and Services Tax is slated to be implemented from that day.
The GST council has finalised the tax slabs for all the articles of consumption.
Under new tax regime, several items including air-conditioner and refrigerator will get cheaper while cars with big capacity engines and SUVs will cost more.
According to GST slabs, seven per cent of the items fall under the exempt list while 14 per cent have been put in the lowest tax bracket of 5 per cent.
Another 17 per cent items are in 12 per cent tax bracket, 43 per cent in 18 per cent tax slab and only 19 per cent of goods fall in the top tax bracket of 28 per cent. This means that as many as 81 per cent of the items will attract 18 per cent or less GST.
NO GST SLAB
Foodgrains, milk and other articles of daily use have been exempted from taxation under the GST regime.
These items are: foodgrains, gur, milk, eggs, curd, lassi, unpacked paneer, natural honey, fresh vegetables, fruits, atta, besan, maida, vegetable oil, Prasad, common salt, contraceptive, bread, bindi, vermillion, stamp, judicial documents, printed books, bangles and handloom products.
5 PER CENT GST SLAB
The items that are used daily but are not considered articles of basic necessity are taxed at 5 per cent under the GST regime.
These items are: sugar, tea, coffee, edible oil, coal, skimmed milk powder, milk food for babies, condensed milk, packed paneer, newsprint, umbrella, PDS kerosene, LPG, broom, fish fillet, cream, frozen vegetables, spices, pizza bread, juice, sabudana, coal, medicines, stent and lifeboat.
12 PER CENT SLAB
The items that are not essential but used by large number of households and people will attract 12 per cent GST.
These items are: butter, ghee, mobile phones, cashew, almonds, sausages, fruit juices, packed coconut water, agarbatti, frozen meat products, animal fat, mixtures, ayurvedic medicines, tooth powder, colour books and sewing machine.
18 PER CENT SLAB
The articles are considered to be used by middle class people will attract 18 per cent GST from July 1.
These items are: hair oil, soap, toothpaste, capital goods, industrial intermediaries, pasta, corn flakes, jams, soups, ice-cream, toilet paper, facial tissues, iron and steel, fountain pen, mineral water, camera, speaker, icecream, envelops and instant food items.
28 PER CENT SLAB
Such items, which are considered as luxury goods or health hazards will attract 28 per cent GST under the new taxation regime from July 1.
These articles are: consumer durables, cars, cement, chewing gum, custard powder, pan masala, perfume, shampoo, make-up items, fireworks, motorcycles, paint, deodorant, shaving cream, hair dye, washing machine, vending machines, vacuum cleaner, hair clippers and dish washer.
WHAT BECOMES CHEAPER
Foodgrains, cereals and milk will cost less from July 1 when the Goods and Services Tax (GST) is rolled out. Currently in many state VAT is charged on food-grains including wheat and rice and also on milk products.
However, sweets will attract five per cent GST but it will still become cheaper at places where VAT is charge right now.
Common use products like hair oil, soaps and toothpaste will be charged at 18 per cent GST instead of present 22-24 per cent tax.
Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 per cent. So, there won't be much difference in pricing after GST is rolled out as these articles attract almost the same tax at present.
Coal will attract GST of 5 per cent as against the current tax incidence of 11.69 per cent. But, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.
ACs and refrigerators will fall in the 28 per cent tax slab. But, they are likely to be cheaper as they currently attract 31-32 per cent tax.
WHAT WILL BECOME COSTLIER
Aerated drinks and cars will be in 28 per cent bracket. On top of the peak rate, small cars will attract a 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.
Pan masala gutka is in 28 per cent GST bracket. It will further attract a 204 per cent cess. With regard to other pan masalas the cess will be 60 per cent.
In case of tobacco, the levy will vary from 71-204 per cent. Scented zarda and filter Khaini will attract 160 per cent cess over and above 28 per cent
Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 per cent plus Rs 1,591 per 1000 sticks.
Non-filter cigarettes exceeding 65 mm but not exceeding 70 mm will attract cess of 5 per cent plus Rs 2,876, that for filter cigarettes the levy is 5 per cent plus Rs 2,126 per thousand sticks.
For cigars, a hefty levy of 21 per cent or Rs 4,170 per 1000 sticks, whichever is higher, would be levied.
Branded gutkha will be slapped with a cess of 72 per cent, while smoking mixtures for pipes and cigarettes will attract a levy 290 per cent.
The consumers of aerated water will pay 12 per cent cess over and above GST while people buying large cars will to cough up 15 per cent cess from July 1.
While small petrol cars with engine less than 1200 cc will attract 1 per cent cess, that with a diesel engine of less than 1500 cc will attract 3 per cent cess.
Large cars with engine greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15 per cent.
Motorcycles with engine of more than 350 cc will attract 3 per cent cess and an equal amount of levy will be applying to aircrafts for personal use and yachts.
On gold, states demanded a 4 per cent tax even though the rate is not among the 5, 12, 18 and 28 per cent approved bands.