New Delhi June 15 (IANS) The incidence of tax on majority of goods is lower under the Goods and Services Tax (GST) regime as compared to the current indirect taxes on account of levy of central excise service tax value-added tax (VAT) octroi entry tax central sales tax and cascading effect the Finance Ministry said on Thursday.
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 central sales tax octroi entry tax levied by the Centre and states the Ministry said here in a statement.
The tax incidence under GST is lower than the present combined indirect tax rates for milk powder curd butter milk unbranded honey dairy spreads cheese cashewnut raisins spices tea wheat rice flour edible oils sugar macaroni noodles fruit and vegetable items pickle sweetmeat sauces instant food mixes ice cement coal domestic Liquefied Petroleum Gas (LPG) and LPG stove it said.
Kerosene insulin tooth powder incense sticks hair oil toothpaste soap diagnostic kits school bags kites note books children s colouring books fabrics footwear helmet spectacles cutlery aluminium foil tractor tyres and tubes weighing machine sewing machine closed-circuit television (CCTV) printers recorder car for physically handicapped person stapler Braille watches medical furniture Light Emitting Diode (LED) baby carriages bamboo furniture kerosene lantern and sports goods will also have lower incidence of tax under GST it added.
The GST rates have been approved by the GST Council. The new indirect tax regime in the country is to come into effect from July 1.
--IANS
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Tax incidence under GST lower than current indirect taxes: FinMin
