The prices of milk and cereals have been sky-rocketing since some time now, but hey, relax because they’ll cost less from July 1. Phew! The Goods and Service Tax Council has announced that there will be no GST on milk, cereals and grains which will significantly lower the prices.
Food grains, cereals, milk, curd and jaggery which are basic daily-use commodities will be exempted from the GST and hence the prices will come down. Also other daily food items like sugar, tea, coffee (barring instant coffee), edible oil and sweets will attract the lowest tax rate of 5 per cent. Manufactured daily goods like soap, toothpaste and hair oil will be charged with 18% GST instead of 22-24%.
Small petrol, diesel cars and aerated drinks will be taxed at 28% with small petrol cars attracting a cess of 1% and small diesel cars 3%. Luxury cars will attract a 15% cess in addition to 28% GST. 350 cc bikes will attract a cess of 3%. The GST rates were decided on all but 6 of 1211 items on Thursday and the remaining commodities like gold, footwear, branded items and bidi will be decided on Friday.
The new GST rates stress on the fact that no commodity will witness an increase in taxation as per the statement of Finance Minister Arun Jaitley. He said that there will be no inflationary impact as most of the rates which are at 31 per cent have been brought down to 28 per cent. So basically the 7% of the total items fall under ‘exempted’ list, 14% goods fall under the lowest bracket of 5 percent GST, 17% items will be charged with 12% GST, 43% fall under the 18% tax slab and only 19% items fall in the top tax bracket of 28 per cent.
Daily use products will get cheaper and will make people happy-merry-yay. The new GST will implement the much-needed control over the peaking prices of food items and especially milk and milk products. Drink away all the milk you want to, tax free! And this seems to be a well-planned GST model.