GST on Indian breads, namkeens, instant noodles and coffee cut to Zero
By Sunil Kumar Batra
New Delhi, Sept 3 (BVI): With effect from September 22, there will be no Goods and Services Tax (GST) on Indian breads and other food items like namkeens, bhujia, instant noodles, instant coffee etc.
The GST rates on these items were today reduced to Zero from 5% and 12% by the GST Council, Union Finance Minister Nirmala Sitharaman said tonight after the 56th meeting of the body.
Now, there will be only two slabs of 5% and 18% on most of the daily use items for common man along with a special slab of 40% for super luxury items, tobacco and tobacco related products, the Minister said.
The other slabs of 12% and 28% have been done away with, she said.
The new rates will come into effect from 22nd September, the first day of festival season Navratri, the Minister said.
The Council has also given the much discussed and required relief on health-related products like health insurance and life-saving drugs.
According to finance ministry officials there will be revenue loss of about Rs 48,000 crore due to lowering of rates on various items.
Products like air conditioners, large-screen TVs, refrigerators and washing machines, which were taxed at the steepest 28%, will now shift to 18%. Items earlier under the 12% slab will also migrate to 5% or 18%, depending on category.
There was unanimous support from all members of the GST Council on all proposals, the minister said, adding it was not only rate rationalization but also made structural changes to bring stability in the GST regime.
There are 33 life-saving drugs and medicines where the GST has been reduced from 12% to zero, spectacles and goggles to 5% from 28%. The man-made fibre has been brought to 5% from 18% now and the man-made yard also to 5% from 12 per cent now.
Earlier, Prime Minister Narendra Modi had announced on Independence Day that there will be next generation reforms in the GST to reduce burden on the common man on the daily use items.
The GST regime came into effect on July 1, 2017, replacing various existing indirect taxes levied by the Centre and state governments. It aimed to create a “unified” national market for goods and services by subsuming various indirect taxes like excise duty, service tax and Value Added Tax (VAT). (BVI)
