In a set of Frequently Asked Questions (FAQs) released by the Central Government in its twitter handle (askGST_GoI), clarified that Retail Sale Price declared on the Foot ware Package is inclusive of Goods and Services Tax (GST).
“As per the Legal Metrology (Packaged Commodities) Rules, 2011, retail sale price [RSP] means the maximum price at which the commodity in packaged form may be sold to the consumer and is inclusive of all taxes. Thus, retail sale price declared on the package is inclusive of GST. GST for footwear will be 5% if the RSP does not exceed Rs. 500 per pair. The GST rate will be 18% if the RSP exceeds Rs. 500 per pair. GST, however, will be payable on the transaction value,” the Government said.
The document contains 15 new FAQ on issues of RCM credit, Invoice numbering, Registration requirement, ITC reversal, Rental income etc.
It said that Lac or shellac bangles are classifiable under heading 7117 and attract 3% GST. Kulfi is classifiable under heading 2105 and attracts 18% GST.
According to the FAQs, nail polish and battery for mobile handsets, attracts 28% of GST. Wet dates fall under heading 0804 and attract 12% GST.
It further clarified that sale of Export Incentives Licences like MEIS attract 12% GST.
5% GST is leviable on Specified fabrics whether or not in form of cut pieces.
Clarifying the rates on tobacco leaves, it said that “For GST rate of 5%, tobacco leaves means leaves of tobacco as such or broken tobacco leaves or tobacco leaves stems.”
Read the full text of the FAQs below.
