New Delhi May 23 (IANS) The Goods and Services Tax (GST) will lead to lower tax burden in several commodities including packaged cement medicaments smartphones and medical devices the Finance Ministry said on Tuesday.
Packaged cement attracts central excise duty of 12.5 per cent plus Rs 125 PMT (per metric tonne) and standard VAT (value-added tax) rate of 14.5 per cent. At these rates the present total tax incidence works out to more than 29 per cent.
If we include tax incidence on account of central sales tax (CST) octroi entry tax etc. the present total tax incidence would work out to more than 31 per cent. As against this the proposed GST rate for cement is 28 per cent the ministry said here in a statement.
There will be lesser tax burden in case of medicaments including Ayurvedic Unani Siddha Homeopathic or Bio-chemic systems also.
Medicaments in general attract six per cent central excise duty and five per cent VAT. Further CST octroi entry tax etc. are also applicable in general. At these rates the present total tax incidence works out to more than 13 per cent.
As against this the proposed GST rate on medicines including ayurvedic medicines is 12 per cent.
Smartphone attracts two per cent central excise duty (one per cent excise duty + one per cent NCCD (national contingency and calamity duty). VAT rates vary from state to state from five to 15 per cent.
Weighted average VAT rate on smartphones works out to about 12 per cent. Thus the present total tax incidence on smart phones works out to more than 13.5 per cent. As against this the proposed GST rate for smartphones is 12 per cent the statement said.
Similarly medical devices including surgical instruments in general attract six per cent central excise duty and five per cent VAT. Along with CST octroi entry tax etc. the present total tax incidence on them works out to more than 13 per cent. As against this the proposed rate under GST is 12 per cent it said.
Worship materials including that required for havan will be under the nil category. However exact formulation for the same is yet to be finalised.
--IANS
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GST will lower tax burden on medical devices, smartphones: FinMin
