GST: How much will household goods cost?
Reports of protests also came in from Varanasi, Allahabad, Jhansi, Faizabad, Shahjahanpur and Ghaziabad. Photograph: (Reuters)
The long-awaited Goods and Services Tax (GST) rolls out tonight even as Opposition parties have said they will boycott the midnight event in the Parliament.
Most economists agree the reform -- first proposed in 2006 -- is necessary and long overdue, but warn the initial shock to the economy is likely to drag, rather than stoke, growth in the short term as businesses adjust.
Traders across the country staged protests today, saying they're not ready for GST. Some also say it is not feasible for small traders.
Small manufacturers, service providers and traders whose annual turnover is below Rs 20 lakh are exempt from GST.
The limit is Rs 10 lakh for 11 states including Sikkim, Assam, Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Mizoram, Tripura, Uttarakhand, Jammu & Kashmir, Himachal Pradesh.
Also, those with an annual turnover of up to Rs 75 lakh can opt for composition scheme.
GST rate of composition is as follows:
1% GST: Traders
2% GST: Manufacturers
5% GST: Restaurants
Here’s how GST will affect day-to-day products.
0% GST: Unpacked food grains, jaggery, milk, eggs, curd, lassi, unpacked paneer, unbranded natural honey, fresh veggie, unbranded wheat, unbranded flour, unbranded besan, prasad, palmyra jaggery, salt, kajal, phool bhari jhadoo, children's drawing and colouring books, education services, health services.
5% GST: Sugar, tea, roasted coffee beans, edible oils, skimmed milk powder, milk food for babies, packed paneer, PDS kerosene, domestic LPG, fabric, footwear (up to Rs 500), apparels (up to Rs 1,000), cashew nuts, resins, agarbatti, coal, coir mats, matting, and floor covering.
12% GST: Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, jelly, umbrellas, cell phones.
18% GST: Hair oil, toothpaste, soap, pasta, corn flakes, soups, ice creams, toiletries, computers, printers.
Although products like kumkum, sindooor, etc have been exempt from GST, a tax rate of 28% has been levied on sanitary napkins.
GST rate for household goods. (Image source: Pib.nic) (Others)