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GST council meeting ends in Srinagar, decides tax rebate on health and education!
GST has decided to exempt education, health care, in the meeting of the goods and services tax (GST) council meeting being the largest tax reform in the history of the country. The Council meeting in Srinagar is now complete and it will be the next meeting on June 3.
In this very important meeting of the GST Council, the rate of tax has been fixed at 80 to 90 per cent of the goods and services. On the first day of the meeting, the council fixed the tax rate on 1,211 items. Where all these products will be placed in the tax structure of 5, 12, 18 and 28 percent. In the Council, tax on coal has been fixed from 11.69% to 5%, 5% on sweets, 18% tax on products like hair oil, toothpaste and soap. At the same time, it has been decided to impose 5% tax on sugar, tea, coffee and oil.
The GST Council is going to decide on the same tax structure for the entire country. After this decision, all businessmen paying central excise and service tax in the country from July 1 will have to pay GST at these new rates.
On the first day of GST Council’s two-day meeting, tax rates were fixed for more than 1200 commodities and services. Separate tax categories have been created which are between 5 to 28 percent. Finance Minister Arun Jaitley told reporters in Srinagar, “In the 1211 items, excluding 6 categories, the remaining GST rates have been fixed.”
Meanwhile, many states demanded to keep the necessary things in a low tax category. Revenue Secretary Hasmukh Adhia says that 81% of these items will fall below the tax rate of 18%.
The basic food items, such as milk, salt and cereal, etc. have been kept in the zero tax category. Tax rates on processed food items have not yet been finalized.
Zero percent tax
Rice, papad, roti
5 percent tax
Soybean, Sunflower seeds
Coal (with a levy of Rs 400 per tonne)
LPG for domestic consumption
Oral rehydration salt
Iron, steel, iron alloys
12 percent tax
Drinks made from milk
Dental manna powders
Children’s Drawing Book
Nuts, bolts, screws
18 percent tax
Sauces, Soups, Ice Creams, Instant Food Makes
Petroleum Jelly, Petroleum Coke
28 percent tax
Chocolate, cocoa butter, fats, oil
Marble, granite, plaster, mica
Dish washing machine
Manicure, pedicure set