New Delhi, June 30: Nearly 81 per cent of items under the Goods and Services Tax (GST) regime would be charged at the rate of 18 per cent or below. The remaining items would attract a tax upto 28 per cent. According to Finance Minister Arun Jaitley, the products placed under the 28 per cent tax slab would not adversely impact the lower or middle class. He further added that the existing levies have been kept in mind before placing a product in the 28 per cent slab, considered to be the luxury tax category.
In the GST Council meeting on June 11, a number of items listed under 28 per cent tax slab were brought down to the lower category of 18 per cent. Prominent among such items include computer printers and cinema tickets, priced below Rs 100. The tax rate of 28 per cent on hotels charging Rs 2,500-5,000 per night was lowered to 18 per cent.
School bags, computer monitors, data projectors, car tyres and sugar-based products will continue to attract a GST of 28 per cent, despite appeals being made by the industry delegations.
The new taxation regime is set to be rolled-out today midnight, through a special session of the Parliament. The prime Opposition – Congress, along with Trinamool Congress, RJD, Samajwadi Party and BSP have decided to boycott the GST launch event, accusing Centre of providing inadequate time to the small and medium level traders to prepare themselves.
List of items in 28% slab of Goods and Services Tax (GST):
- Sugar and sugar confectionery
- Cocoa and cocoa preparations
- Preparations of cereals, flour, starch or milk; pastrycooks’ products
- Miscellaneous edible preparations
- Pan masala
- Beverages, spirit and vinegar
- Tobacco and manufactured tobacco substitutes
- Salt; sulphur; earths and stone; plastering materials, lime and cement
- Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes
- Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks.
- Essential oils and resinoids, perfumery, cosmetic or toilet preparations
- Soap, organic surface-active agents, washing preparations, lubricating preparations
- Artificial waxes, prepared waxes, polishing or scouring preparations
- Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations
- Chemical products
- Plastics and articles thereof
- Rubber and articles thereof
- Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)
- Furskin and artificial fur
- Wood and articles of wood, wood charcoal
- Paper and paperboard; articles of paper pulp, of paper or of paperboard
- Headgear and parts thereof
- Prepared feathers and down and articles made of feather or of down – artificial flowers; articles of human hair
- Articles of stone, plaster, cement, asbestos, mica or similar material
- Ceramic products
- Glass and glassware
- Articles of iron or steel
- Copper and articles thereof
- Aluminium and articles thereof
- Tools, implements, cutlery, spoons and forks of base metal; parts thereof of base metal
- Miscellaneous articles of base metal
- Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof
- Electrical machinery and equipment and parts thereof; sound recorders and re-producers, television image and sound recorders and reproducers, and parts and accessories of such articles
- Vehicles other than railway or tramway rolling-stocks, and parts and accessories thereof
- Aircraft; spacecraft and parts thereof
- Ships, boats and floating structures
- Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof
- Clocks and watches and parts thereof
- Musical instruments; parts and accessories of such articles
- Arms and ammunition; parts and accessories
- Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings
- Toys, games and sports requisites; parts and accessories thereof
- Miscellaneous manufactured articles
- Project imports, laboratory chemicals, passengers’ baggage, personal importation, ship stores.
Among the industry delegations who have objected to be included under the 28 per cent tax slab, the most stringent protest came from the All India Tyre Dealers’ Federation (AITDF). The union claims that 28 per cent on tyres of animal drawn carts will ruin the rural logistic industry. The AITDF claims the GST would lead to sharp increase in prices of the caste, which in turn would cripple the rural economy.