The new indirect tax regime in the country is to come into effect from 01.07.2017, wherein fixation of GST rates on the supplies is joint responsibility of the Central and State governments after the approval from the GST Council.
In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied [on account of central excise duty rates / embedded central excise duty rates / service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, etc.] by the Centre and States.
A list of such supplies, where the GST incidence is lower than the present combined indirect tax rates are reflected as under:
S. No. | Chapter / Heading / Sub-heading / Tariff item | Description of goods |
|---|
1 | 4 | Milk powder |
2 | 4 | Curd, Lassi, Butter milk put up in unit container |
3 | 4 | Unbranded Natural Honey |
4 | 0401 | Ultra High Temperature (UHT) Milk |
5 | 0405 | Dairy spreads |
6 | 0406 | Cheese |
7 | 801 | Cashew nut |
8 | 806 | Raisin |
9 | 9 | Spices |
10 | 9 | Tea |
11 | 10 | Wheat |
12 | 10 | Rice |
13 | 11 | Flour |
14 | 15 | Soyabean oil |
15 | 15 | Groundnut oil |
16 | 15 | Palm oil |
17 | 15 | Sunflower oil |
18 | 15 | Coconut oil |
19 | 15 | Mustard Oil |
20 | 15 | Sunflower oil |
21 | 15 | Other vegetable edible oils |
22 | 17 | Sugar |
23 | 1702 | Palmyra jaggery |
24 | 1704 | Sugar confectionery |
25 | 1902 | Pasta, spaghetti, macaroni, noodles |
26 | 20 | Fruit and vegetable items and other food products |
27 | 2001, 2004 | Pickle, Murabba, Chutney |
28 | 21 | Sweetmeats |
29 | 2103 | Ketchup & Sauces |
30 | 2103 30 00 | Mustard Sauce |
31 | 2103 90 90 | Toppings, spreads and sauces |
32 | 2106 | Instant Food Mixes |
33 | 2106 | Other pulses bari (mungodi) |
34 | 22 | Mineral water |
35 | 2201 90 10 | Ice and snow |
36 | 25 | Cement |
37 | 27 | Coal |
38 | 27 | Kerosene PDS |
39 | 27 | LPG Domestic |
40 | 30 | Insulin |
41 | 33 | Agarbatti |
42 | 33 | Tooth powder |
43 | 33 | Hair oil |
44 | 33 | Toothpaste |
45 | 3304 20 00 | Kajal [other than kajal pencil sticks] |
46 | 34 | Soap |
47 | 37 | X ray films for medical use |
48 | 3822 | Diagnostic kits and reagents |
49 | 3926 90 99 | Plastic Tarpaulin |
50 | 4202 | School Bag |
51 | 4820 | Exercise books and note books |
52 | 4823 | Kites |
53 | 4903 | Childrens' picture, drawing or colouring books |
54 | 50 | Silk fabrics |
55 | 51 | Woollen fabrics |
56 | 52 | Cotton fabrics not containing any other textile material |
57 | 53 | Other Vegetable yarn fabrics |
58 | 54, 55 | Manmade filament/fibre fabrics |
59 | 61, 62, 63 | Readymade garments and made up articles of textiles of sale value not exceeding ₹ 1000 per piece |
60 | 61, 62, 63 | Readymade garments and made up articles of textiles of sale value exceeding ₹ 1000 per piece |
61 | 64 | Footwear of RSP upto ₹ 500 per pair |
62 | 64 | Other footwear |
63 | 65 | Helmet |
64 | 65 | Headgear and parts thereof |
65 | 68 | Fly ash bricks and fly ash blocks |
66 | 701510 | Glasses for corrective spectacles and flint buttons |
67 | 73 | LPG Stove |
68 | 76 | Aluminium foils |
69 | 8215 | Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs |
70 | 84 | Fixed Speed Diesel Engines of power not exceeding 15HP |
71 | 4011 | Tractor rear tyres and tractor rear tyre tubes |
72 | 8423 & 9016 | Weighing Machinery [other than electric and electronic] |
73 | 8443 | Printers [other than multifunction printers] |
74 | 8521 | Recorder |
75 | 8525 | CCTV |
76 | 8452 | Sewing Machine |
77 | 8472 | Staplers |
78 | 8703 | Car for Physically handicapped person |
79 | 8715 | Baby carriages |
80 | 900140, 900150 | Spectacles Lenses |
81 | 9002 | Intraocular lens |
82 | 9004 | Spectacles, corrective |
83 | 91 | Braille Watches |
84 | 94 | Medical furniture |
85 | 94 | LED |
86 | 94 | Kerosene pressure lantern |
87 | 9403 | Bamboo furniture |
88 | 9506 | Sports goods other than articles and equipments for general physical exercise |
89 | 96031000 | Phul-jahroo |
GST rate alignment reduces tax incidence on numerous essential goods compared to previous combined indirect taxes. Fixation of GST rates is a joint Central-State responsibility subject to GST Council approval, replacing multiple cascading indirect levies. The document lists supplies for which the GST incidence is lower than the prior combined indirect tax burden, covering essential foodstuffs, dairy, cereals, edible oils, sugar and confectionery, packaged and processed foods, selected pharmaceuticals and medical supplies, textiles, footwear, education and stationery items, household goods and certain industrial inputs.
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