Daily Use Products, LPG To Become Cheaper Under GST

Note books, domestic LPG, aluminium foils, insulin, agarbatti and a large number of daily use household products will become cheaper under the GST regime set to be rolled out from July 1.

In a majority of supplies of goods, the tax incidence approved by the GST Council is much lower than the present combined indirect tax rates levied by the Centre and states, the finance ministry said in a statement.

The current taxes are levied on account account of central excise duty rates, embedded central excise duty rates, service tax post-clearance embedding, VAT rates or weighted average VAT rates, cascading of VAT over excise duty and tax incidence on account of CST, Octroi, Entry Tax, among others.

The new indirect tax regime in the country is to come into effect from July 1, wherein fixation of GST rates on the supplies is joint responsibility of the Central and State Governments after the approval from the GST Council.

Some of the items where the GST incidence is lower than the present combined indirect tax rates are milk powder, curd, butter milk, Unbranded Natural Honey, dairy spreads, cheese, spices, tea, wheat, rice, flour, and spices.       

(PTI)