Indian economy has come closer to a historic step of introduction of a new national sales tax replacing hosts of state and central levies after a Government panel comprising Finance Ministers of all 29 states and three Union Territories and Union Finance Ministry finalised tax rates applicable to different goods and services under GST to be rolled out from July 1.
Finance Minister Arun Jaitley told media in Srinagar, where the Panel is currently meeting to decide on the fitment of tax on the goods and services under the GST, that the Council has approved seven GST rules out of nine.
“Fitment done for all of 1,211 items barring six categories”, he said.
The Council is expected to finalise a list of exempted items today. It will also discuss Gold and Beedi rates. The Legal Committee is looking at the remaining two GST rules, Miister Jaitely said.
Revenue Secretary Hashmukh Adhia said, "Cereals and milk are to be a part of exempt list under the GST while food grains will be cheaper for consumer post GST Rollout."
Sugar, tea, edible oil are to be taxed at 5 per cent under GST while coal will be taxed at 5 per cent under the new sales tax. Only 19 per cent of goods will be taxed above 18 per cent and 81 per cent of items to fall under below 18 per cent GST rate slabs, he said. There are four tax slabs under the GST — 5, 12, 18 and 28 percent.