GST Rates: Biscuits to attract 18%; footwear 5% and Gold 3%

NEW DELHI (INDIA): The Goods and Services Tax (GST) Council on Saturday decided to tax gold at 3 per cent, footwear below Rs 500 at 5 per cent and biscuits at 18 per cent under the Goods and Services Tax, which will be rolled out from July 1.nnThe Goods and Services Tax (GST) Council, chaired by Finance Minister Arun Jaitley, at its 15th meeting also decided on rates of yarns, agriculture machinery, apparels and rough diamonds among others.nnThe council, Jaitey said, will again meet on June 11, before the roll out of the new indirect tax regime.nnThe all powerful council has also finalised the GST rules regarding transition and return filings.nnJaitley said the council was also apprised of the IT preparedness which is necessary for the successful roll out of the GST.nn”GSTN made a detailed presentation on the amount of work done and IT preparedness,” he told reporters after the meeting.nnJaitley said footwear costing below Rs 500 will be taxed at 5 per cent, while that above this amount will attract 18 per cent levy. Currently, footwear priced from Rs 500-1,000 attracts 6 per cent excise duty. Besides, states levy VAT on it.nnAs regards readymade garments, they will attract a levy of 12 per cent. Solar panels will be taxed at 5 per cent under GST.nnTendu leaves and bidis would be taxed at the rate of 18 per cent and 28 per cent respectively, the finance minister said, adding that there will be no cess on bidis.nnOn the other hand, rough diamonds will attract a levy of 0.25 per cent.nnFor footwear and textiles, Jaitley said that a major concession has been given and the items being used by the common man will be taxed at low rates.nnThe GST Council has already fitted over 1,200 goods and 500 services in the tax bracket of 5, 12, 18 and 28 per cent last month.nnGST will subsume all major levies including excise, service tax and VAT, unifying 16 different taxes, and make India a single market.nnSource: Press Trust of India