Home Food 4 GST slabs may make oil, chicken expensive; TV, air conditioner cheaper

4 GST slabs may make oil, chicken expensive; TV, air conditioner cheaper

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The recently proposed 4 slabs GST structure may hit the common man as it is likely to result in higher taxes on various items including kitchen staples such as edible oils, spices and chicken, as per a PTI report.

Bulk of goods and services should have standard GST rate of 18pc: CII
The higher rate of 26 per cent should apply only to 'demerit goods' and the term luxury goods should not be used to define this category

However, the prices of certain like televisions, air conditioners, fridges and washing machines may become cheaper with decrease in taxes.

The government plans to roll out the new indirect tax regime, Goods and Services Tax (), from April 1, 2017. In its meeting with states this week, the Centre has proposed a four slab rate structure.

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The lowest rate proposed is 6 per cent, with two standard rates of 12 and 18 per cent. The peak rate, which will mostly apply to and consumer durables, will be 26 per cent. Besides, a cess is also likely to be levied on demerit or sin goods and polluting items.

READ MORE: GST from April 1, 2017 across India: MoS Finance, Arjun Meghwal

According to the Centre’s estimates on impact of the 4-slab rate structure on CPI inflation, items like chicken and coconut oil which currently suffer a tax incidence of 4 per cent will be taxed at 6 per cent under the GST regime, PTI said in its report.

Similarly, the tax burden on refined oil, mustard oil and groundnut oil will go up from 5 per cent to 6 per cent. Other kitchen staples too will be taxed at 6 per cent as against 3 per cent in case of turmeric and jeera, 5 per cent in case of dhania, black pepper and oil seeds.

READ MORE: E-commerce companies ask to be exempted from GST

TVs, air conditioners, washing machines, inverters, refrigerators, electric fans and cooking appliances may become cheaper with the incidence of taxes on them declining from 29 per cent to 26 per cent post implementation of the GST.

READ SURVEY: Implementation of GST to attract more FDI

Perfumes, shaving cream, powder, hair oil, shampoo, soap, and other toiletry items will become cheaper as they too presently are taxed at 29 per cent.Gas stove, gas burner, mosquito repellent and insecticide may, however, become expensive as they are currently taxed at 25 per cent, lower than the proposed peak rate of 26 per cent under GST.