Another Meeting of GST council was held on 3rd November 2016. This was a fruitful meeting on rates of GST in India. After so many meeting held by GST council the Final rates has been fixed.
Goods and Services Tax will help the people to easily trade from one state to another state. The rates of goods will be same in all over India after GST Applied.
People have the question in mind that what are the rates of GST in India.
So Following are the slab of rates under GST.
- 0 Percent : On the Exempted goods Like essential items ,Grains etc.
- 5 percent : This Tax rate will be applicable on common required goods like cloth etc.
- 12 percent : This is the standard tax under GST rates slab includes the packaged foods too.
- 18 percent : All Products which are not covered under 12 percent GST rates will be covered under this except Luxury Products.
- 28 Percent : This is the rates of GST which is applied on Luxury and High class products. Common goods under this category of GST are tobacco, Luxury Cars, alcohol etc.
There will be addition cess applicable to cover the Losses and Compensate it to the sates for Five Years : Mr Arun Jaitley, Finance Minister of India.
Government had announced balanced Tax rates of GST in India which has the advantages and disadvantages too. So what is the impact of GST rates on Consumers?
Many Products Like tobacco and other Luxury products which are taxed at 40 % inclusive of Excise and Vat will now have to pay 28% of GST. So these Products will be cheaper now.
There is also a tendency that manufacturer will save the Excise but they may increase the rates of product to earn more profit after low rates of GST in India. It will be a negative Impact of GST Rates.
Here are some examples of products which will impact after GST Tax rates:
- Items like garments and shoes which are now under slab of 4 percent now taxed fewer than 5% after New rates of GST and there is a impact of 1% costlier to customers.
- AC’s, washing machines, Fridge, cooking appliances and many other Products will be cheaper as the total GST impact on these will be 28 percent which is now more than that.
- All the Services may come under the Tax slab of 18% which is costlier by 3% from Now.
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