GST rates may be lowered for dosa batter, custard powder, kitchen lighter
New Delhi: A number of daily use products ranging from idli/dosa batter to kitchen gas lighter may cost less as the goods and services tax (GST) Council is considering lowering rates on these items.
Tax rates on over two dozen products are being sought to be lowered by the GST Council after anomalies in their fixations were pointed out, officials said.
To deal with businesses that are deregistering their brands post GST to avoid taxes, the fitment committee has proposed to the GST Council to consider 15 May 2017, as the cut off date for considering as a registered brand for the purpose of levy of GST, irrespective of whether or not the brand is subsequently deregistered.
A final decision in this regard would be taken by the GST Council, headed by finance minister Arun Jaitley and comprising representatives of all states, at its next meeting on 9 September in Hyderabad. Unbranded food items are exempted from GST, whereas branded and packaged food items attract 5% rate. Hence, many businesses are deregistering their brands to avoid the levy.
People aware of the matter said that the GST Fitment Committee has approved new rate structure of over two dozen items and forwarded the proposal to the apex decision making body. The GST Council in the 5 August meeting considered and approved lower rates for some of these items and the remaining will be taken up in the next meet on 9 September, they said.
People cited above, however, could not state the items on which the tax rates have been lowered. They said GST on dried tamarind has been proposed to be lowered to 5% from 12% currently and so will be the case in roasted gram.
Custard power would attract 18% GST as against 28% currently while idli/dosa batter would be charged with 12% tax against 18% currently. Oil cakes would be charged with a uniform 5% GST irrespective of end use as against present practice of nil rate on oil cake for animal feed.
GST on dhoop batti, dhoop and other similar items has been proposed at 5%, down from 12% at present. This brings dhoop batti at par with agarbattis which attract a 5% tax rate. Plastic raincoast, rubber bands, rice rubber rolls for paddy de-husking, computer monitors and kitchen gas lighters would see GST being lowered from 28% to 18 %.
GST on corduroy fabrics is to be lowered to 5% from 12% currently and the same is to be done for saree fall. Tax on textile caps is to be lowered to 12% from 18% and that on idols made of clay to 5% from 28% currently.
Brooms and brushes would be tax free as against 5% GST levied currently while rosaries and prayer beads would be charged with 5% tax as compared to 18% now. Hawan samagri would be charged with 5% GST as compared to nil now.