The central government finally made decisions over the long discussing GST rates in its 14th meeting in Srinagar headed by union finance minister Arun Jaitley along with finance ministers of states. The announcement mentioned that consumer goods for daily consumptions like the pulses, food grains will be cheaper while the Finance Minister Arun Jaitley cleared that GST rates have been fixed for the rest of the total of 1,211 items except for six items due in procedure.
Union Revenue Secretary Hasmukh Adhia also mentioned that GST will exempt milk and grains while the food will be cheap. And explained that 18 percent GST rate will be applicable on cosmetic products like hair oil, soap, toothpaste. Other items which are falling in the range of 5 percent duty slab includes coal, Sugar, tea, coffee, edible oil etc.
Finance Minister Arun Jaitley said, that the GST Council has approved seven rules of GST while the Law Committee is reviewing the remaining two rules related to changes and details of the final draft. The Council will consider rates of services at its second meeting and if by then tax rates are not fixed for all the items, then there may be another meeting of the council.
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The finance minister also clarified that the list of items out of the GST scope is expected to be finalized on Thursday at its second meeting in which significant Tax rates on gold will also be considered. Actually, the GST council has set tax rates on 80 to 90 percent of the goods and services on the first day of its two-day meeting schedule. Four rate structures have been kept in the proposed GST system, in which minimum of five percent has been kept on essential items of everyday use.
The Council, chaired by Union Finance Minister Arun Jaitley, approved the rules under the goods and services tax system in the first session of the meeting. The GST is planned to be implemented from July 1.
Apart from this, the Finance Ministers of various states have demanded relaxation in silk yarn, worship items and handicrafts products in GST rates. However, Jaitley believes that minimum exemption under GST should be given and it should be given only if it is needed.
