Today GST council is going to finalise taxes to be levied on six commodities, including gold, textiles and biscuits, as Centre and states gear up to roll out new indirect tax regime from July 1.
This meeting is chaired by FM, comprising state counterparts, consider review in tax rates of goods besides clearing rules to be followed for proforma of forms to be filled once GST come.
Important thing decides in today’s meeting is to finalise rates of tax and cess to be levied on the commodities remaining. The GST Council had last month fitted over 1,200 goods and 500 services in the four tax brackets of 5, 12, 18 and 28 percent. Besides, it had imposed cess over and above the peak rate of 28 percent on demerit and luxury goods.
However, the Council had deferred a decision on the tax rates on six commodities biscuits, textiles, footwear, bidis, bidi wrapper leaves (tendu patta), as well as precious metals, pearls, precious or semi-precious stones, coins and imitation jewellery.
In this, certain states have pitched for a 4 percent tax rate along with input tax credit on gold so that the effective incidence on the precious metal remains at the existing level of 2 percent.
As regards biscuits, sources said it was discussed at the last meeting of the Council in Srinagar. Certain states sought a zero levy on biscuits which were priced below Rs 100/kg, while the Centre wanted to put it in the 12 percent bracket. Currently, excise duty is not levied on biscuits priced below Rs 100/kg, but states levy VAT.