Soap, sugar to small cars would be cheap in GST-era

- Abhishek Kumar   19-05-2017

          


Categorization of items for taxation, final fitments and other necessary works are being rushed to meet the deadline of Goods and Services Tax’s implementation date of 1st July.

As agreement reached in final, commodities like milk, cereals and jiggery will be exempt from GST. Sugar, edible oil, tea and coffee will be with 5% tax and goods like soap, toothpaste and hair oil will be taxed at flat 18%.

GST is going to bring a good time for car buyers as well as sellers as the small petrol and diesel vehicles will be taxed at 28% as compared to present taxation between 30-32%. However, two wheelers with 350cc or above capacity will attract 3% cess, same as the small diesel vehicles. Luxury cars will be bearing 15% cess in taxation.

In total, 1211 items are being categorized in different tax slabs or exempetions both by the GST Council prepared by the Finance Ministry, Govt. of India.

Some items haven’t been finalized for taxation yet under GST, like cigarettes, footwear and gold.