The GST Council fixed the rates for almost all the remaining items, such as gold and silver, diamonds, biscuits, textiles, and footwear. Now, the new indirect tax regime is most likely to be rolled out on July 1, despite reservations voiced by West Bengal. All other states have agreed to the timeline. The Council also cleared confusion over the rates previously fixed, besides raising refund on input taxes paid on some stocks in transition for which dealers did not have receipts. Even those under the current excise tax exemption limit, with an annual turnover of up to Rs 1.5 crore, would get input tax credit. After receiving feedback on the rates from industry, the Council would meet again on June 11 to review these. The GST Network (GSTN), the information technology backbone of the new tax regime, had responded satisfactorily to various questions from state finance ministers.
Finance:The Govt has fixed a 5% GST rate on cotton fibre, yarn and fabric against the current prevailing rate of “nil” and this would make all products proportionately costlier. Some states, however, had levied value added tax on cotton yarn and fabric at 2-4%. Overall, 5% GST levy is higher than the existing levies on cotton yarn and fabric. GST levy on textiles
- Silk and jute 0%
- Cotton and natural fibre 5%
- Manmade fibre 18%
- All categories of yarn 5%
- Manmade yarn 18%
- Fabric 5%
- Apparels priced above Rs 1,000 12%
- Apparels priced below Rs 1,000 5%
Other GST rate finalised on 03.06.2017
- Gold, Gems, Gold & Gems Jewellery 3%
- Rough Diamond - 0.25%
- Biscuits - 18%
- Footwear below ₹ 500 - 5%, Rest - 18%
- Packaged Food - 5%
- SolarPanels - 5%
- FiberSilk & Jute - 0%
- Beedis - 28% (No Cess)
Transitional Input tax credit : Where person does not have Input tax credit documents ,he can now claim 60% deemed credit of GST rate if GST rate on product is 18% or above and 40% in case GST rate is lower.
- a) Goods in bracket of 5% and 12% - Deemed Credit Kept at 40%
- b) Goods in bracket of 18% and above- Deemed Credit kept at 60%
Further For big ticket items where products are serial numbered like tv,fridge.AC,computer ,etc , manufacturer may issue Documents for input tax credit to dealer and on the basis of Documents ,dealer can claim 100% input tax credit as per actual for Excise/VAT in transitional period.
Next GST Council Meeting on 11 JUN 2017 to discuss unfinished Matters.
[Service wise GST rate on Services]18.05.2017
[Item wise List of GST rate on Goods]18.05.2017
[List of Service exempted under GST]18.05.2017