JULY 01, 2017: GST Implementation & Details

GST Rolls Out on JULY 01, 2017!

Goods & Services Tax (GST) being rolled out on July 01, 2017, has 5 tax driven slabs: 0%, 5%, 12%, 18%, and 28%. Based on the utility the goods and services, the tax slabs have been assigned. Accordingly, the luxury items & services attract higher tax slabs, while the basic need based items are taxed low. Ensuring moderation, a large number of items have been kept under the 18% tax slab.

The Syntax Systems, India has compiled a broad list of items to give you an insight of the GST:

1.      Gold has not yet been assigned any GST slab and will be taxed at 3%.
2.      Rough diamonds, rough precious, and semi-precious stones will be taxed at 0.25%. 

Edibles: eggs, milk, butter curd, natural honey, fresh fruits and vegetables, palmyra jaggery, all types of salt
Provisions: jute, fresh meat, fish, chicken, flour, besan, bread, prasad, bone meal, etc.; hoof meal, horn meal, cereal grains hulled
Consumer Goods: bindi, sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, bones and horn cores, bone grist, kajal, Children's picture, drawing or colouring books, human hair

Hotels and lodges with tariff below Rs 1000

5% GST
Edibles: cream, coffee, tea, spices, pizza bread, rusk
Provisions: Items such as fish fillet, skimmed milk powder, branded paneer frozen vegetables, sabudana (sago), cashew nut, cashew nut in shell, raisins
Consumer Goods: apparel below Rs 1000, packaged food items, footwear below Rs 500, kerosene, coal, medicines, stent, lifeboats, Ice and snow, Bio gas, Insulin, agarbatti (joss sticks), kites, postage or revenue stamps, stamp-post marks
Transport services (railways, air transport) since their main input is petroleum, which is outside the influence of GST, and small restaurants

12% GST
Edibles: butter, cheese, ghee, fruit juices, namkeen (mixtures)
Provisions: frozen meat products, dry fruits in packaged form, animal fat, sausage, ketchup & sauces
Consumer Goods: Apparels above Rs 1000, Ayurvedic medicines, tooth powder, colouring books, picture books, umbrella, sewing machine, cell phones, all diagnostic kits and reagents, exercise books and note books, spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, spectacles, playing cards, chess board, carom board and other board games
State-run lotteries, Non-AC hotels, business class air ticket, fertilisers, work contracts

18% GST
Edibles: biscuits (All categories), cornflakes, pastries and cakes
Provisions: flavoured refined sugar, pasta, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, curry paste, mayonnaise and salad dressings; mixed condiments and mixed seasonings
Consumer Goods: footwear costing more than Rs 500, trademarks, software, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors, kajal pencil sticks, headgear and parts thereof, aluminium foil, weighing machines (other than electric or electronic weighing machines), printers (other than multifunction printers), electrical transformer, CCTV, Optical Fibre, bamboo furniture, swimming pools and padding pools
AC hotels that serve liquor, telecom services, IT services, branded garments and financial services, room tariffs between Rs 2500 and Rs 7500, restaurants inside five-star hotels

28% GST
Edible Goods: chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, molasses
Provisions: Bidis, chewing gum
Consumer Goods: paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use
Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7500, 5-star hotels, race club betting, movie tickets

(Research Data Courtesy: https://cleartax.in/s/gst-rates and https://www.indiafilings.com/find-gst-rate)

Other policies being rolled out today are:

Aadhaar UID Compulsory
·         Filing of IT returns will require mandatory linking of Aadhaar
with PAN. To link your Aadhaar and PAN, click here.
·         No PAN card will be issued without Aadhaar.
·         Linking PF account with Aadhaar is now mandatory.
·         No school or college scholarships will be awarded to students not having Aadhaar.
·         No concession on railway tickets can be availed without quoting Aadhaar number.
·         No passport can be issued without Aadhaar card.

International Policy
·         Indians flying abroad are not required to fill departure cards from July 1.
·         Online visitor visa application available for Indians flying to Australia from July 1.

                                   - Shivani Yadav, Writer - TSS, Corporate Affairs, Commerce, & Government Policy


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