Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

The new indirect tax regime in the country is to come into effect from 01.07.2017, wherein fixation of GST rates on the supplies is joint responsibility of the Central and State governments after the approval from the GST Council.

In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied [on account of central excise duty rates / embedded central excise duty rates / service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, etc.] by the Centre and States.

A list of such supplies, where the GST incidence is lower than the present combined indirect tax rates are reflected as under:

S.

No.

Chapter / Heading / Sub-heading / Tariff item Description of goods1 4

Milk powder

2 4

Curd, Lassi, Butter milk put up in unit container

3 4

Unbranded Natural Honey

4 0401

Ultra High Temperature (UHT) Milk

5 0405

Dairy spreads

6 0406

Cheese

7 801

Cashew nut

8 806

Raisin

9 9

Spices

10 9

Tea

11 10

Wheat

12 10

Rice

13 11

Flour

14 15

Soyabean oil

15 15

Groundnut oil

16 15

Palm oil

17 15

Sunflower oil

18 15

Coconut oil

19 15

Mustard Oil

20 15

Sunflower oil

21 15

Other vegetable edible oils

22 17

Sugar

23 1702

Palmyra jaggery

24 1704

Sugar confectionery

25 1902

Pasta, spaghetti, macaroni, noodles

26 20

Fruit and vegetable items and other food products

27 2001, 2004

Pickle, Murabba, Chutney

28 21

Sweetmeats

29 2103

Ketchup & Sauces

30 2103 30 00

Mustard Sauce

31 2103 90 90

Toppings, spreads and sauces

32 2106

Instant Food Mixes

33 2106

Other pulses bari (mungodi)

34 22

Mineral water

35 2201 90 10

Ice and snow

36 25

Cement

37 27

Coal

38 27

Kerosene PDS

39 27

LPG Domestic

40 30

Insulin

41 33

Agarbatti

42 33

Tooth powder

43 33

Hair oil

44 33

Toothpaste

45 3304 20 00

Kajal [other than kajal pencil sticks]

46 34

Soap

47 37

X ray films for medical use

48 3822

Diagnostic kits and reagents

49 3926 90 99

Plastic Tarpaulin

50 4202

School Bag

51 4820

Exercise books and note books

52 4823

Kites

53 4903

Childrens' picture, drawing or colouring books

54 50

Silk fabrics

55 51

Woollen fabrics

56 52

Cotton fabrics not containing any other textile material

57 53

Other Vegetable yarn fabrics

58 54, 55

Manmade filament/fibre fabrics

59 61, 62, 63

Readymade garments and made up articles of textiles of sale value not exceeding Rs. 1000 per piece

60 61, 62, 63

Readymade garments and made up articles of textiles of sale value exceeding Rs. 1000 per piece

61 64

Footwear of RSP upto Rs. 500 per pair

62 64

Other footwear

63 65

Helmet

64 65

Headgear and parts thereof

65 68

Fly ash bricks and fly ash blocks

66 701510

Glasses for corrective spectacles and flint buttons

67 73

LPG Stove

68 76

Aluminium foils

69 8215

Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs

70 84

Fixed Speed Diesel Engines of power not exceeding 15HP

71 4011

Tractor rear tyres and tractor rear tyre tubes

72 8423 & 9016

Weighing Machinery [other than electric and electronic]

73 8443

Printers [other than multifunction printers]

74 8521

Recorder

75 8525

CCTV

76 8452

Sewing Machine

77 8472

Staplers

78 8703

Car for Physically handicapped person

79 8715

Baby carriages

80 900140, 900150

Spectacles Lenses

81 9002

Intraocular lens

82 9004

Spectacles, corrective

83 91

Braille Watches

84 94

Medical furniture

85 94

LED

86 94

Kerosene pressure lantern

87 9403

Bamboo furniture

88 9506

Sports goods other than articles and equipments for general physical exercise

89 96031000

Phul-jahroo

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