Goods and Service Tax is an indirect tax throughout the country comes into effect from the midnight of June 30, 2017 at a special midnight session in the Central Hall of the Parliament.
Under GST, goods and services will be taxed at 0%, 5%, 12%,18% and 28%. GST includes central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi. Other levies which are currently applicable on inter-state transportation of goods are also likely to be done away with in GST regime.
The following taxes will be bound together by the GST::Central Excise Duty, Commercial Tax, VAT, Food Tax, CST, Introit, Entertainment Tax, Entry Tax, Purchase Tax, Luxury Tax and Advertisement tax.
GST @ 0%:: Unpacked food grains, Fresh vegetables,Unbranded Atta, Unbranded Maida, Gur, Milk,Eggs,Curd,Lassi,Unpacked Paneer, Unbranded Natural honey, Palmyra jiggery, Salt,Kajal, Phool Bhari Jhadoo,Children’s drawing and,colouring books, Educational services, Health services
GST @5%::Sugar, tea, Roasted Coffee Beans, Edible Oils, Skimmed Milk powder, Packed Paneer, Cashew Nuts, Raisin, PDS Kerosene, Domestic LPG, Footwear (upto Rs.500) Apparels (upto Rs.1,000), Agarbatti, Coir mats.
GST @12%:: Butter, Ghee, Almonds, Fruit Juice, Packed Coconut water, Preprations of vegetables, fruit, nuts or other parts of Plants including pickle, Mrabba, Chutney, Jam and Jelly, Umbrella, Mobiles.
GST @18%:: Hair oil, Toothpaste, Soap, Pasta, Corn Flakes, Soups, Ice cream, Toiletries, Computers and Printers.