The Goods and Services Tax (GST), which is being hailed by the government as the biggest tax reform in the Indian history since independence, has been implemented in the country on 1st July 2017. The ruling government rolled out GST in a special midnight session
The ruling government rolled out GST in a special midnight session organized in the central hall of parliament. The event was attended by the President, Prime Minister, Chief Ministers and MPs of both Houses. However, the Congress and several other opposition parties were absent as in to boycott the session.
The Goods and Services Tax (GST) is a unified taxation system which has replaced all the indirect taxes levied such as excise, sales tax, VAT, entertainment tax, luxury tax, etc on the transactions of goods and services, from a singular one, the GST.
Under this new taxation structure, the GST Council has classified all the goods and services into different categories which attract diverse tax rates of 0%, 5%, 12%, 18%, 28%.
Other than this, there are a few special rates for the goods such as rough precious and semi-precious stones, gold and sin goods(cigarettes) which attract 0.25%, 3% and an additional cess respectively.
|GST Exemption List|
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List of Exempted Products / Goods Under GST in India 2018
While there are daily use products whose prices will not be changed under this new GST structure. These exempted products or goods are categorized and listed below:
Under live animals – All the goods such as live asses, mules and hinnies, live bovine animals, live swine, live sheep and goats, live poultry, ducks, geese, turkeys and guinea fowls along with other live animals such as mammals, birds and insects are under GST exempt.
Meat and edible meat offal – All the meat products other than in their frozen state and kept in unit packages are exempted from this new tax. List of excluded meat and edible meat offal comprises the meat of bovine animals, swine, sheep or goats, horses, asses, mules or hinnies, etc. the only condition applies they must be fresh or chilled. In addition to the meat and edible offal of the poultry of heading, pig fat-free of lean meat, and poultry fat-not extracted are also tax free items from GST.
In addition to the meat and edible offal of the poultry of heading, pig fat-free of lean meat, and poultry fat-not extracted are also excluded items from GST.
Dairy produce – Exemption on dairy produce includes products made from milk, eggs, and natural honey. The list encompasses fresh milk and Pasteurised milk, separated milk, cream not concentrated and without added sugar or any sweetening matter as well as curd, lassi, buttermilk, Chena or Panner are also excluded from the GST exemption.
The eggs, birds’ eggs, in The eggs, birds’ eggs, in shell or preserved state are exempted. The only condition on these dairy produces to exempt them from GST, is they should not be in unit containers and bearing a registered brand name.
Products of animal origin – Human hair, waste of human hair and semen in the frozen state are under GST exemption.
- Under Live trees and other plants, bulbs, roots and the like, cut flowers and ornamental foliage are excluded items from GST.
- Fresh vegetables, roots and tubers but not in frozen or preserved state along with dried leguminous vegetables, shelled, whether or not skinned or split are excluded in this new tax structure.
- Fresh fruits, not in frozen state or preserved are under GST exempt.
- Coffee, tea, mate and spices, coffee beans but not roasted. Unprocessed green leaves of tea; fresh ginger and fresh turmeric besides in processed form, are excluded.
Cereals – all the cereals are GST free, yet not kept in the unit container and holding a registered brand name.
Products of the milling industry; malt; starches; inulin; wheat gluten – all the categories of flour such as aata, maida, besan etc, wheat or meslin flour are excluded from GST. But they should not be kept in unit container and carrying a registered brand name. Flours other than of wheat or meslin which include maize flour, Rye flour, etc. Cereal groats, Flours other than of wheat or meslin which include maize flour, Rye flour, etc. Cereal groats, meal and pellets, not kept in unit container and holding a registered brand, will not attract GST. In addition to that, the flour of potatoes, dried leguminous vegetables of heading (pulses), sago or roots, tamarind, singoda, mango flour, etc are tax free under GST.
In addition to that, the flour of potatoes, dried leguminous vegetables of heading (pulses), sago or roots, tamarind, Singoda, mango flour, etc are tax free under GST.