Goods and Services Tax: All you need to know!!

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GST(Goods and Services Tax) will be effective from midnight on Friday,  after being the debatable topic in the parliament and after amid protest from the opposition parties.

It is believed that GST(Goods and Services Tax) is the India’s biggest tax reform which will be launched by the  Prime Minister Narendra Modi at Parliament’s historic Central Hall at midnight. It will be effective from July 1, 2017.

The upcoming Goods and Services Tax would be launched in the presence of President Pranab Mukherjee.

It was reported that Former Prime Ministers Manmohan Singh and H D Deva Gowda was also invited to the event.

It was learnt that the GST (Goods and Services Tax) will likely change the indirect tax scenario of the country

GST will affect common man?

Yes, the common man will be seen affected from the Goods and Services Tax as the prices of the goods and services will rely on the nature of effectiveness.

Look at the table to understand Goods and Services Tax more clearly:

 Products Current rate (%) After GST (%)
Cheese 5-14.5

11

12
Tableware – Metal 18

Revised 12% for spoons, forks, ladles, skimmers, cake servers, fish knives, tongs

Perfume 17.5 – 27 18
Butter 12
Glucometers 11-20.5 12
Cosmetics 28
Tableware – Ceramic 17.5 18
Tableware – Wood 18 and 28
Tableware – Plastic 18
Kitchenware – Metal 11-20.5 18
Revised 12% for Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
Kitchenware-Ceramic 17.5 – 27 18
Kitchenware-Wood 18 and 28
Kitchenware-Plastic 18
Kitchenware-Fly ash 18
X-Ray Apparatus (for medical, dental & veterinary) 17.5-27 12
X-Ray Apparatus 28
 
Footwear (below Rs. 500) 14.41 5
Footwear(above Rs. 500) 14.41 18
Readymade garments (below Rs. 1000) 5-6 5
Readymade garments (above Rs. 1000) 18.5 12
Biscuits( Less than Rs. 100/kg) 11.89 18
Biscuits(Above Rs. 100/kg) 16.09 18
Corn-flakes 9.86 18
Wrist watch 20.64 28
Jam 5.66 18
Baby food (sold in unit containers) 7.06 18
Cellular Phone 13-24 12
Small Cars (<4m <1200 cc petrol) 25-27 28+1 (cess)
Small Cars (<4m <1500 cc diesel) 25-27 28+3 (cess)
Mid-segment (<1500 cc) 36-40 28+15 (cess)
Cars with 1500 cc & larger engines 41.5-44.5 28+15 (cess)
Vehicles for transport with 10 to 13 passenger capacity (cannot be considered as bus) 39-41 28+15
 
Motorcycles 25-35 28
Motorcycles Engine >350 25-35 28+3 (cess)
Television 25-27 28
 
Stationery (Plastics) 11-27 18
Stationery (Paper) 12 and 18
Rates revised on following items from 18% to 12% – Exercise books and note books
Stationery (Pen/Fountain Pen)
Rates revised on following items from 18% to 12% – Eraser
Music Instruments (Other than Handmade) 25-27 28
Digital Cameras 25-27 28
Iron Ore 17-18 5
Luxury items like yacht 25-27 28+3 (cess)
Music Instruments (Handmade) 0-12.5 0
Renewable energy devices 17-18 5

 

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