The Goods and Services Tax (GST) Council approved revised GST rates in order to address the issue of inverted duty structures. The council also approved the withdrawal of some exemptions. Finance Minister Nirmala Sitaraman said that any increase in GST rates was intended to make up for inefficiencies in the value chain. The GST tax rates will come into effect from July 18.
The Minister said, “The Fitment Committee’s suggestions before the GST Council were considered in full, and more or less, all of them have been accepted”. She added that that there was no opposition from any state on rate changes.
The revised GST rate list:
Commodities that will now be attracting GST rate of 18% include-
12% GST rate from now on-
Exemptions-
GST rate at 5% on-
Cut and polished diamonds will be taxed at 1.5% compared to 0.25% earlier.
‘GST was previously exempted on specified food items, grains etc. when not branded, or right on the brand, has now been foregone under the revised rates of GST. It has been recommended to revise the scope of exemption to exclude from it pre-packaged and pre-labelled retail pack in terms of Legal Metrology Act, including prepacked, pre-labelled curd, lassi and butter milk’.
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