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GST: Gold 3%, beedis 28%
Gold will be taxed at 3 per cent under the Goods and Services Tax (GST) regime, Union Finance Minister Arun Jaitley said on Saturday ending the suspense on the item dear to Indians even as the GST Council completed the exercise of bringing all items under GST\'s 4-slab tax structure.
All set for July 1 roll-out, says Jaitley
New Delhi: Gold will be taxed at 3 per cent under the Goods and Services Tax (GST) regime, Union Finance Minister Arun Jaitley said on Saturday ending the suspense on the item dear to Indians even as the GST Council completed the exercise of bringing all items under GST's 4-slab tax structure.
"Gold, which currently has an excise of 1 per cent and states charge 1 per cent VAT...keeping these various taxes in mind, and after a lot of debate in the GST Council, we have finally reached a consensus on 3 per cent for gold and gold jewellery," Arun Jaitley, who heads the GST Council, told reporters here after the 15th meeting of the Council.
Besides, rough diamonds have been levied a nominal tax of 0.25 per cent in order "to keep the audit trail" of transactions, he said. While beedi leaf or "tendu" will be taxed at 18 per cent, beedis will be levied tax at 28 per cent. "Beedi and beedi leaf will not attract cess over and above these taxes, but cigarettes will have cess," Jaitley said.
Footwear below Rs 500 will be taxed at 5 per cent, while the rest would be in the 18 per cent bracket once the new regime is rolled out from July 1. Currently, footwear priced from Rs 500-1,000 attracts 6 per cent excise duty. Besides, states levy VAT on it. The council also decided on rates of yarns, agriculture machinery and apparels among others. The council, Jaitey said, will again meet on June 11, before the roll out of the new indirect tax regime.
The all powerful council has also finalised the GST rules regarding transition and return filings. Jaitley said the council was also apprised of the IT preparedness which is necessary for the successful roll out of the GST. "GSTN made a detailed presentation on the amount of work done and IT preparedness," he told reporters after the meeting.
As regards readymade garments, they will attract a levy of 12 per cent. Solar panels will be taxed at 5 per cent under GST. For footwear and textiles, Jaitley said that a major concession has been given and the items being used by the common man will be taxed at low rates.
The GST Council has already fitted over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 per cent last month. GST will subsume all major levies including excise, service tax and VAT, unifying 16 different taxes, and make India a single market.
| GST RATES |
| Gold | 3% |
| Biscuits | 18% |
| Beedis | 28% |
| Packaged food items | 5% |
| Footwear below `500 | 5% |
| Silk, jute | 0% |
| Apparel below `1,000 | 5% |
| Apparel over `1,000 | 12% |
| Cotton and natural fiber | 5% |
| Solar panels | 5% |
