Gold to attract 3% GST: GST Council approves Rates of Textile, Footware etc.

Excise Duty - Finanace Minister - Taxscan

The 15th Meeting of the GST Council held at New Delhi yesterday fixed the rates of gold, apparels, footware, biscuits etc.

The GST Council, chaired by Finance Minister Arun Jaitley and comprising state counterparts, approved 5% tax on branded food items, 18% on tendu leaves, 18% on biscuits, and a highest rate of 28% on bidis. Unlike cigarettes, no cess will be levied on bidis. 5% GST will be imposed on footwear costing up to Rs 500. Footwares costing above 500 ruprees will be taxed at flat 18%.

In the textiles category, silk and jute fibre have been exempted, while cotton and natural fibre and all kinds of yarns will be levied a 5 per cent GST. Man-made fibre and yarn will, however, attract a 18 per cent tax rate. All categories of fabric will attract a 5 per cent rate. Man-made apparel up to Rs 1,000 will attract a 5 per cent tax, lower than the existing 7 per cent. Those costing above Rs 1,000, will continue to attract 12 per cent.

“Both in the case of footwear and textiles, a major concession has been given,” Finance Minister Arun Jaitley said, adding the Council will meet one more time on June 11 to review the preparedness before the July 1 rollout.

The 14th Meeting of the Council held at Srinagar had fixed the rates for a majority of Goods and Services. With the approval of tax rates on remaining items, the Country has moved a step closer to roll out of GST with the permission of all states.

taxscan-loader