GST: Wheat, rice prices likely to come down

Foodgrain such as wheat, rice and pulses might become cheaper after the goods and services tax (GST) system kicks in later this year, as the GST Council has decided to keep them zero-rated under the new tax regime.

Commodities like edible oil, tea, coffee and sugar are also likely to cost less as the proposed five per cent tax rate is either lower than the existing taxes in most places or is same as the currently levied value added tax (VAT).

For cereals, some industry players said unless something was done about the mandi tax and cess, just keeping them zero-rated under