The 14th Goods and Services Tax Council meeting has introduced multiple changes in the tax regime of the country. Rates for goods are now at nil, 5%, 8%, 12%, and 28% and the compensation cess to be levied on certain goods and services has also been approved for a number of categories. However, healthcare and educational services have been exempted from the purview of GST.
Milk, egg, curd, lassi, gur, unbranded atta, unbranded maida, besan, unbranded honey, salt, fresh vegetables, jaggery, unpacked paneer
Hotels and logging with tariff below INR 1,000
Rough precious and semi precious stones (0.25%)
Sugar, packed paneer, tea, edible oils raisin, domestic LPG, roasted coffee beans, kerosene, skimmed milk powder, cashew nuts, footwear (<INR 500), milk food for babies, apparels (less than INR 1,000), fabric coir mats, floor covering, spices, agarbatti, coal, mishti/mithai (indian sweets), life-saving drugs, coffee(except instant), rosaries, hawan samagri, fiber products
Small restaurant (under 5%),
Textile job work
Butter, computers, ghee, processed food, almonds, mobiles, fruit juice, preparations of vegetables, fruits, nuts or other parts of plants including pickle murabba, chutney, jam, jelly, gongs, bells, statues, umbrella
Business class air tickets,
Hair oil, capital goods, toothpaste, industrial intermediaries, soap, ice-cream, pasta, toiletries, corn flakes, computers, soups, printers, swimming pool equipment, tractor parts, custard powder, rice, computer monitors
AC hotels serving liquor,
Room tariffs between INR 2500 to INR 7500,
Restaurants in 5-star hotels
Chewing gums, ATM, washing machines, vacuum cleaner, shavers, dishwasher, water heater, automobiles, shampoo, dyes, sunscreen, chocolate, pan masala, weighing machine, aircraft for personal use, motor cycles, vending machines, ceramic tiles, hair shampoo, after shave
Private-run lotteries (State authorized),
Hotels with room tariff above INR 7500,
The above table gives item-wise details of the gst rates which would be levied under the new tax regime.
The current tax regime when compared to the prevalent tax system in India has a number of advantages, these advantages clearly cull out the differences in the two sects of thoughts i.e. GST vs. the old tax system in India.
Thus, GST could be considered a stepping stone in the direction of a uniform and simple tax regime for the country.