What type of GST is Proposed to be Implemented?
Will it be Dual GST?
The final draft of GST has been passed and will be implemented with an effect from July 1, 2017. GST integrates taxes at three levels CGST, IGST and SGST. The system in India is Dual GST between Center and the State.
GST is the final uniform system of taxation implemented to replace all the indirect taxes. It sorts to reduce the cascading effect of taxes and simplify the system. Special GST departments are being set up at the centre and the state level. The tax rates are like following.
GST has introduced some set of tax rates applicable to all the goods and services @ certain tier rates.
- 0% GST – On about 50% of the consumer products which also includes food grains
- 5% – Mass Consumption items are included in this list which includes goods like mustard oil and spices.
- 12% – On The processed foods and the list also includes products like smartphones.
- 18% – On various products such as soaps, oils, toothpaste, refrigerator, TV etc.
- 28 % – White goods and cars/bikes are included in the list.
- 28% – Many high-end items like luxury cars, Pan Masala, Tobacco and aerated drinks