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GST Council Decides Tax Rates For 1,211 Items, Except Gold
File photo of Union Finance Minister Arun Jaitley. (Image: PTI)
Srinagar: The Goods and Services Tax (GST) Council on Thursday decided the tax rates for 1,211 items, a majority kept at 18 percent, though the rates on gold and beedi remained undecided.
Revenue Secretary Hasmukh Adhia said that an overwhelming 81 percent of items will attract tax of 18 percent or below. Only 19 percent of items will be taxed at the highest rate of 28 per cent, he said.
The fitment of only six categories of goods remain to be decided, including gold, beedi and cars.
However, the fitment of packed and branded food is yet to be decided.
Jaitley said the rates on the remaining items will be decided in the Council's meeting on Friday.
"The Counicl may meet again if final rates are not decided on Friday."
"In the overall basket there will be a reduction... but because of greater efficiency and less tax evasion there will be revenue buoyancy and tax collection will go up," he said.
Around 400 items are currently exempt from excise and VAT under the existing indirect tax regime.
Items like hair oil, toothpaste and soaps, which are now taxed at 28 percent, will be taxed at 18 percent under GST.
Sugar, tea, coffee (except instant), edible oil and coal will attract 5 percent tax.
Jaitley also announced that seven rules for GST have been decided while the Council will take up the ones on transition and returns on Friday.
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