New Delhi: Footwear below Rs 500 will be taxed at 5 percent under the Goods and Services Tax, while the rest would be in the 18 percent bracket once the new regime is rolled out from 1 July. Currently, footwear priced from Rs 500-1,000 attracts 6 percent excise duty. Besides, states also levy VAT.
Gold, on the other hand, will be taxed at 3 percent and biscuits at 18 percent.
The GST Council, chaired by finance minister Arun Jaitley and comprising his state counterparts, on Saturday decided on tax rates for six goods including footwear, textiles, biscuits and gold.
Solar panels will be taxed at 5 percent. Packaged food items will be taxed at 5 percent.
Beedis will be taxed at 28 percent and tendu leaves at 18 percent. A nominal rate of .025 percent will be imposed on rough diamonds.
Natural yarn will be taxed at 5 percent, while man made yarn will be taxed at 18 percent.
The GST Council has already fitted over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 percent last month.
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.
Published Date: Jun 04, 2017 09:40 am | Updated Date: Jun 04, 2017 09:47 am