Has GST bought Acchey Din to the middle class hub of people?
The indirect rate tax seems to be beneficial to middle and lower class running families. Milk, vegetables and fruits, puffed rice, salt, organic manure, animal feed, firewood, raw silk, wool, jute and hand-operated agricultural equipment too will be zero-rated under it.
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Today, government confirmed that the prices of all the above stuff will be lower down by 5% once the goods and service tax gets implied. Cereals, pulses, Atta, Maida and Besan have been exempted from GST by the government and would be implemented from July 1.
“Due to no GST on these items, most of them are expected to become cheaper in the range of approximately 4-5 per cent as compared to their existing prices,” a finance ministry statement said. But this is not case with branded food packs, they would attract 5% tax when GST will be implied. While items like food grains, milk and vegetables do not attract any central tax at present, some states levy VAT of 4 -5 percent on these goods. Over the last two meetings the GST Council, chaired by Union Finance Minister Arun Jaitley and comprising state counterparts, has decided the tax rates of all the goods and services. 5, 12, 18 and 28 has been kept as tax slab, but with exception of precious ornaments and metals which will attract 3% GST and rough diamond with 0.25% GST.