Rates of GST in India
Another Meeting of GST council was held on 3rd November 2016 for rates of GST in India. This was a fruitful meeting on rates of GST in India. After so many meeting held by GST council, the Final rates has been fixed.
So Following are the slab of rates under GST.
- 0 Percent :On the Exempted goods Like essential items, Grains etc.
- 5 percent:This Tax rate will be applicable on commonly required goods like cloth etc.
- 12 percent:This is the standard tax under GST rates slab includes the packaged foods too.
- 18 percent:All Products which are not covered under 12 percent GST rates will be covered
under this except Luxury Products.
- 28 Percent: This is the rates of GST which is applied on luxury and High-class products. Common goods under this category of GST are tobacco, Luxury Cars, alcohol etc.
There will be addition cess applicable to cover the Losses and Compensate it to the states for Five Years: Mr. Arun Jaitley, Finance Minister of India. the government had announced balanced Tax rates of GST in India which has the advantages and disadvantages too. So what is the impact of GST rates on Consumers?
The government had announced balanced Tax rates of GST in India which has the advantages and disadvantages too. So what is the impact of GST rates on Consumers?
Here are some examples of products which will impact after GST Tax rates:
- Items like garments and shoes which are now under the slab of 4 percent now taxed fewer than 5% after New rates of GST and there is an impact of 1% costlier to customers.
- AC’s, washing machines, Fridge, cooking appliances and many other Products will be cheaper as the total GST impact on these will be 28 percent which is now more than that.
- All the Services may come under the Tax slab of 18% which is costlier by 3% from Now.
The average rate of GST in India is less than 18% which is demanded by all the political Parties. The government is willing to start it from 1st April 2016 for their political Reasons too.
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