Saturday, 3 June 2017

GST to be 5% on footwear below Rs 500, 18% on rest

Footwear below Rs 500 will be taxed at 5 per cent under the Goods and Services Tax, while the rest would be in the 18 per cent bracket once the new regime is rolled out from July 1.

Gold, on the other hand, will be taxed at 3 per cent and biscuits at 18 per cent.

The GST Council, chaired by Finance Minister Arun Jaitley and comprising his state counterparts, today decided on tax rates for six goods including footwear, textiles, biscuits and gold.

Sources said the footwear costing below Rs 500 will be taxed at 5 per cent while that above Rs 500 will attract 18 per cent levy. Currently, footwear priced from Rs 500-1,000 attracts 6 per cent excise duty. Besides, states also levy VAT.
Sources said items like readymade garments are likely to be taxed at 12 per cent, while cotton textiles and cotton yarn will be in the 5 per cent category.

Bidis are likely to be taxed at the highest rate of 28 per cent, they said.

The GST Council has already fitted over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 per cent last month.

The Council at its 15th meeting today took up for discussion the remaining goods for taxation.
It approved the transition and return rules earlier in the day.
GST, to be rolled out from July 1, will unify 16 different taxes and make India a single market.
http://indiatoday.intoday.in/story/gst-to-be-5percent-on-footwear-below-rs-500-18percent-on-rest/1/970067.html

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