Following up from the meeting of the Goods and Services Tax (GST) council on May 18 and 19, Minister of State for Finance Santosh Gangwar said the stage is set for the scheduled roll out of the GST Bill on July 1st.
"After the meeting which took place in Srinagar last week, it is safe to say that the GST will be levied across the country, starting July 1," Gangwar told ANI.
Discussing the minutes of the meeting, Gangwar, while hailing the new tax regime to be an 'all-inclusive one', asserted that both vendors and consumers will benefit out of it.
"The bill has been drafted keeping collective development in mind. As of now, 32 taxes are being levied on commodities that are in circulation across the country. After the GST is incorporated, it will be a single replacement to these 32 taxes," he said.
Earlier on Friday, Union Finance Minister Arun Jaitley said the GST Bill, which is to exempt the daily-use commodities from the levy, is going to be a more efficient and consumer-friendly taxation system.
"Four different rate slab for services are five per cent, 12 per cent, standard rate of 18 per cent and luxury rate of 28 per cent, out of which five per cent mostly comprises of transport services," said Jaitley, while addressing the media in Srinagar.
"GST in relation to the services sector was completely adopted in today's meeting. Depending on the nature of service, there are various categorisations which have been made with a set of services, which have been exempted at present," Jaitley added.
"Other services are fitted into rates such as 5, 12, 18, and luxury rate of 28 per cent," he said while announcing that five percent rates comprises of transport services.
"Restaurants with a turn-over of 50 lakhs or below can go over with a composition of five percent," said the
Union Finance Minister while adding that service tax on non air-conditioned restaurants will be 12 per cent, and that on air-conditioned and liquor license will be 18 per cent.
Earlier, the GST Council decided to exempt the daily-use commodities from the levy.
Prices of food-grains, especially wheat and rice, will come down as they will be exempted from the GST.
Currently, some states levy Value Added Tax ( VAT) on them. Daily-use items like sugar, tea, coffee (barring instant coffee), edible oil and life-saving drugs will attract the lowest tax rate of five per cent, almost the same as current incidence.
Milk and curd will continue to be exempted from taxation when the GST replaces current indirect taxes, while 'Mithai' or sweets will attract five per cent levy.
The common use products like hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 per cent instead of present 22-24 per cent tax incidence through a combination of central and state government levies.
The Council fitted all but six items in 5, 12, 18 or 28 per cent tax brackets.
Seven per cent of the items fall under the exemption list while 14 per cent have been put in the lowest tax bracket of 5 per cent.
17 per cent items are in 12 per cent tax bracket, 43 per cent in 18 percent tax slab and only 19 per cent of goods fall in the top tax bracket of 28 per cent.
Cars, ACs, refrigerators and aerated drinks will be in 28 per cent bracket.
On top of the peak rate, small cars will attract a 1 per cent cess, mid-sized cars will attract 3 per cent and luxury cars 15 per cent.
