While the whole exemption list has been finalized as now, it is learned that about 80 items would form part of exemption list (i.e. no GST would be applicable on it). These items include grains, non-mineral water, poha etc.
A committee of officials headed by Revenue Secretary Hasmukh Adhia is preparing the item-wise list for GST rates. Sources said that more than 16000 representations were received seeking exemptions or lower rate of GST.
Common items exempted by the Centre and states include bread, eggs, milk, vegetables, cereals, books and salt. These will continue to be exempted.
GST 0% Rate Category Items List
GST 12% Rate Category Items List
GST Rates Item Wise as discussed in GST Council Meeting held on 18th May 2017 – Download PDF
Centre and states agreed to exempt most food items including wheat, rice and milk from the Goods and Services Tax (GST).
While manufactured goods will attract 18% GST, other household items such as sugar, tea, coffee and edible oil will attract 5% levy.
Luxury cars will be taxed at 28% GST plus a cess of 15%, while small petrol cars will be taxed at 28% GST plus a 1% cess and small diesel cars at 28% plus 3% cess.
The negative list of services, exempted from the levy, will be reduced to include only essential services such as health and education. “We will have a very small number of essential services out of the GST net,” the official added. The negative list of services currently has 18 heads, which include health care, education, goods transport agency and non-air conditioned restaurants, among others.
Source : BSTD
