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According to GST slabs, 7 per cent of the items fall under the exempt list while 14 per cent have been put in the lowest tax bracket of 5 per cent.
Another 17 per cent items are in 12 per cent tax bracket, 43 per cent in 18 per cent tax slab and only 19 per cent of goods fall in the top tax bracket of 28 per cent.
This means that as many as 81 per cent of the items will attract 18 per cent or less GST.
NO GST SLAB
Foodgrains, milk and other articles of daily use have been exempted from taxation under the GST regime.
These items are: foodgrains, gur, milk, eggs, curd, lassi, unpacked paneer, natural honey, fresh vegetables, fruits, atta, besan, maida, vegetable oil, Prasad, common salt, contraceptive, bread, bindi, vermillion, stamp, judicial documents, printed books, bangles and handloom products.
5 PER CENT GST SLAB
The items that are used daily but are not considered articles of basic necessity are taxed at 5 per cent under the GST regime.
These items are: sugar, tea, coffee, edible oil, coal, skimmed milk powder, milk food for babies, condensed milk, packed paneer, newsprint, umbrella, PDS kerosene, LPG, broom, fish fillet, cream, frozen vegetables, spices, pizza bread, juice, sabudana, coal, medicines, stent and lifeboat.
12 PER CENT SLAB
The items that are not essential but used by large number of households and people will attract 12 per cent GST.
These items are: butter, ghee, mobile phones, cashew, almonds, sausages, fruit juices, packed coconut water, agarbatti, frozen meat products, animal fat, mixtures, ayurvedic medicines, tooth powder, colour books and sewing machine.
18 PER CENT SLAB
The articles are considered to be used by middle class people will attract 18 per cent GST from July 1.
These items are: hair oil, soap, toothpaste, capital goods, industrial intermediaries, pasta, corn flakes, jams, soups, ice-cream, toilet paper, facial tissues, iron and steel, fountain pen, mineral water, camera, speaker, Ice cream, envelops and instant food items.
28 PER CENT SLAB
Such items, which are considered as luxury goods or health hazards will attract 28 per cent GST under the new taxation regime from July 1.
These articles are: consumer durable's, cars, cement, chewing gum, custard powder, pan masala, perfume, shampoo, make-up items, fireworks, motorcycles, paint, deodorant, shaving cream, hair dye, washing machine, vending machines, vacuum cleaner, hair clippers and dish washer.
If I missed anything please refer GST RATE SCHEDULE FOR GOODS
Not complying with the above tax regulations and even minor oversights can have serious consequences on your business, including harsh penalties. If you need help on setting right process for your organisation, you can get in touch with me.
Mr. Abhishek Shrivastav
Electronica Finsmart Solutions Private Limited