GST rates rolled out – Who are the Winners and Losers?

Government is gearing up to roll out GST from July 1st. On the first day of Srinagar meet the council for GST announced the tax rates for a total of 1211 items. The tax rates varied among 5%, 12%, 18%, and 28%. As per the finance minister around 81% of the 1211 items will be below 18 percent tax rate and 19% items will be taxed at the highest rate of 28%. Let us look at some of the items which fall under these slabs.

Winners:

ITEM PREVIOUS TAX RATE (%) NEW GST RATE (%)
Sugar <10 5
Tea 6 – 7 5
Coffee 6 – 7 5
Edible Oil <10 5
Coal 11.7 5
Renewable Energy 18 5
Lifesaving drugs 5 5
Mobile phones ( imported) 18 – 27 12
Iron ore 18 5
Cereals 5 0
Hair oil 28 18
Toothpaste 28 18
Small Restaurants 15 5
Non AC Hotels 15 12
Healthcare/education 15 0

 

Losers:

ITEM PREVIOUS TAX RATE (%) NEW GST RATE (%)
Ghee/Butter 6.5 12
Refrigerators / air conditioners 24 28
PC/ Laptop 15 18
Chocolates 25 28
Washing machines 24 28
Small cars 25 28+1
Mid segment cars 36 28+15 (cess)
Motorcycles (<350cc) 25 28
Perfumes 24 28
Tobacco ( additional cess) 20+(many states) 28+cess
5 Star hotels 15 28

 

Most of the tax rates on daily food consumables have been reduced which will benefit a common man.

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