GST Council Finalises Tax Rates, Gold Tax At 3 Percent
New Delhi: Finally the Goods and Services Tax Council fixed the tax for gold and giving relief to middle classes it has taxed the yellow metal at 3 percent and biscuits at 18 percent. A nominal rate of .025 percent will be imposed on rough diamonds.
Last month, the GST Council had put 1200 goods and 500 services in the four tax brackets of 5, 12, 18 and 28 percent. The GST regime will be rolled out from July 1.
On Saturday, the Council decided on tax rates for six goods including footwear, textiles, biscuits and gold. The Council was presided over by Finance Minister Arun Jaitley and comprised his State counterparts.
It was decided to put footwear below Rs 500 in the 5 percent tax bracket, while the rest would be taxed 18 percent. Presently, footwear priced from Rs 500-1000 attracts 6 percent excise duty. Apart from this States also levy VAT.
While solar panels and packaged food items will be taxed at 5 percent, beedis will be taxed at 28 percent and tendu leaves at 18 percent.
Natural yarn will be taxed at 5 percent, while manmade yarn will be taxed at 18 percent.
The Council at its 15th meeting took up for discussion the remaining goods for taxation on Saturday. It approved the transition and return rules earlier in the day.
GST, to be rolled out from 1 July, will unify 16 different taxes and make India a single market. The next meeting will take place on 11 June.