Sugar, tea, coffee, milk powder to cost less under GST

Gifts worth up to Rs 50,000 by employer exempt under GST: Govt
Gifts worth up to Rs 50,000 by employer exempt under GST: Govt

NEW DELHI: Sugar, tea, coffee and milk powder will cost less with tax incidence coming down under the goods and services tax scheduled to be rolled out from July 1.

Currently, sugar attracts specific central excise duty of Rs 71 per quintal plus a cess of Rs 124, which translates into ad valorem rate of more than 6 per cent.

If central sales tax (CST), octroi, and entry tax are factored in, the total incidence works out to more than 8 per cent.

“As against this, the proposed GST rate on sugar is only 5 per cent, i.e. 3 per cent less than the present incidence of taxes,” the finance ministry said.

The tax under GST on tea and coffee — other than instant coffee — will come down to 5 per cent, from the current 7 per cent. (AGENCIES)

LEAVE A REPLY

Please enter your comment!
Please enter your name here