The unified indirect tax regime, Good and Services Tax is all set to kick in on July 1. While the much-awaited tax system is being touted as one of the biggest reform since India got its independence, people across the country are left wondering the products that are likely to cheaper and costly once GST is rolled out.
While making the announcement, Finance Minister Arun Jaitley had assured that the new tax system was planned in a manner that it would reduce the burden on the common man. People running both big and small business enterprises are bracing themselves to deal with the new set of rules. It is being also reported that buying cars will be much easier for people as they all set to become much cheaper due to lower tax rates from tomorrow.
A clear set of rules will be listed during the high-profile launch that will be attended by both Prime Minister Narendra Modi and President Pranab Mukherjee tomorrow.
All goods are aligned in the five slabs of taxation— 5%, 12%, 18%, 28% and 28%. For example, 18% tax will be charged on products including soap, shampoo, and no tax will be charged on condoms and salt. If you’re wondering what products will fall under which tax slab, look no further. Here’s all you need to know:
NIL or Zero per cent tax:
Products starting from Salt, Eggs, meat, and Condoms are exempt from Gst tax. Sindoor is also tax-free under the new tax regime.
5% tax slab:
5% tax would be charged on some of the products that include Nestle Paneer, frozen vegetables, pizza bread, branded cereals. Footwear up to Rs 500, Kites, Cashew nut, Raisins falls under the 5% tax bracket.
12% tax slab:
People will have to pay 12% tax on some of the necessities that include, Butter, Cheese, Ketchup and sauces, notebooks and Sanitary Napkins. Luxury products including Imported phones and frozen meat products also fall under this category.
18% tax slab:
18% tax would be levied on items including pickle, Murabba, Chutney, Jam, Jelly, Curry Paste, Mayonnaise and Salad Dressings; Mixed Condiments & Mixed Seasonings, Kajal Pencil Sticks, Biscuits, Mineral Water, Ice Cream, Soup, Printers, Pasta, Cakes & Pastries, Helmet, Toothpaste, Hair Oil, Soap, Shampoo. Booking tickets online for air/railways will also be charged at 18% tax rate.
28% tax slab:
Luxury products like Chewing Gum, Chocolate, Deodorants, Shaving Creams, After Shave, Shaving Kit, Hair Clippers, Sunscreen, Video Games Consoles & Machines, Sports Equipment will be levied at the highest rate of 28%.
Here’s the complete list:
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