Since its implementation on 1st July, 2017 GST has been always in the news due to its high tax rates & bit complicated tax slabs also Govt faces lots of criticism for it.
Recently RBI forecast GDP growth rate at 7.3% (2017-18), which is lower than last year’s GDP growth rate. To main economic stability and for a higher GDP growth Government decided to revise tax rates.
On Friday Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.
The GST council slashed rates on 27 items and 12 services. Here are the details of revised tax rates on goods:
|Sl. No||Products||New Tax Rate|
|1||Jute, Fresh meat, Fish, Chicken, Eggs, milk, Butter milk, Curd, Natural honey, Fresh fruits and vegetables, flour, Besan, Bread, Prasad, salt, Bindi, Sindoor, Stamps, Judicial papers, Printed books, Newspapers, Bangles, Handloom, Bones and Horn cores, Bone grist, Bone meal, Cereal grains hulled, Palmyra Jaggery, Salt – all types, Kajal, Children’s’ picture, Drawing or Colouring books, Human hair, Khadi purchased from Khadi and Village Industries stores, Clay idols, brooms, Cotton seed oil cake, Charkha.
|2||Sugar, Packed Paneer, Coal, Tea, Edible Oils, Raisin, Domestic LPG, Roasted Coffee beans, Skimmed Milk Powder, Cashew Nuts, Footwear below Rs.500, Milk food for Babies, Apparels below Rs.1000, Fabric, Coir Mats, Matting & Floor covering, Spices, Agarbatti, Sweets, Life saving drugs||5%|
|3||Butter, Computers, Ghee, Processed Food, Almonds, Mobiles, Fruit Juice, Packed Coconut Water, Umbrella, All diagnostic kits and reagents, Exercise books and note books, Spoons, Non-electric of base metal, Animal carving material.||12%|
|4||Footwear above Rs.500, Biscuits, pasta, cornflakes, Pastries and cakes, preserved vegetables, Jams, Sauces, soups, Ice cream, Instant food mixes, Mineral water, Tissues, Envelopes, Tampons, note books, Steel products, Printed circuits, Camera, Speakers, Kajal pencil sticks, Industrial Intermediaries.
|5||Bidis, Chewing Gum, Molasses, Chocolate not containing cocoa, Waffles and Wafers coated with choclate, Pan masala, Aerated water, Paint, Deodorants, Shaving creams, After shave, Hair shampoo, Dye, Sunscreen, wallpaper, Ceramic tiles, Water Heater, Dishwasher, weighing machine, Washing machine, ATM, Vending machines, Vacuum cleaner, Shavers, Hair clippers, automobiles, Motorcycles, Aircraft for personal use
Revised tax rates on Services:
|Sl. No||Services||New Tax Rate|
|1||Hotel & lodges with tariff under Rs.1000 , Health Care, Education services||0%|
|2||Transport services, Small Restaurants, Textile jobs.||5%|
|3||State-run lotteries, Non-AC hotels, Business class air ticket, Work Contracts||12%|
|4||AC hotels that serve liquor, Telecom services, IT services, Branded garments and Financial services, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants five-star hotels||18%|
|5||Private-run lotteries authorized by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, Race club betting, Cinema||28%|
This new finalized tax rate concentrates on not to elevate the tax burden on common use or daily use products.
How to use SlickAccount to update your tax rates:
Just Go to the Items Screen and click on edit to the individual items and then update the tax rates to the new one. All the old invoices will be with older tax rates and new ones will bear new tax rates
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