GST: Foodgrains exempted from levy, luxury vehicles to also attract 15% cess

May 19, 2017   admin  GST News
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The Centre and the states on Thursday agreed on goods and services tax rates for a majority of products and opted to lower the incidence of tax on mass-use items to ensure that prices come down in the new regime.

As a result, foodgrains and gur have been completely exempted from the levy, while products such as mithai, edible oil, sugar, tea, coffee and coal will attract 5% GST. Similarly, hair oil, tooth paste and soaps are in the 18% bracket along with capital goods and industrial intermediaries.

Sources told TOI that small cars will face 28% GST, along with a small cess, while luxury cars will attract 15% cess in addition of the tax. Consumer durables such as AC and fridge too are in the 28% bracket, although officers said given the current incidence of 30-31%, there should be a reduction in prices.

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“There is no increase on any commodity. On many of them there is a reduction and tax on will also go away. Overall, there will be a reduction… One criteria in mind is that overall impact should not be inflationary,” finance minister Arun Jaitley told reporters.
Revenue secretary Hasmukh Adhia told reporters that of the 1,211 items, 7% will be exempted, 14% will be in the 5% slab, 17% in the 12% bracket, 43% in the 18% segment, while 19% will go into the top bracket of 28%.
Source : http://timesofindia.indiatimes.com/business/india-business/cars-durables-to-face-28-gst-luxury-vehicles-to-also-attract-15-cess/articleshow/58736375.cms
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