By Accommodation Times Bureau
The Central government has initiated its media ‘Blitzkrieg’ to make the common man aware of how the upcoming Goods and Services Tax (GST) will reduce prices of most goods.
In the advertisements, appearing in the leading daily newspapers, pictorial representations of items which are exempt from GST is springing out . The Central Board of Excise and Customs (CBEC) is representing the advertise to make people aware of how the GST is going to effect the rates of daily goods.
The GST Council, chaired by Finance Minister Arun Jaitley has already made decision on tax rates of significant commodities. The commodities have been devided in slabs of 5, 12, 18 and 28 percent, with the exception of gold which will attract 3 percent GST.
GST, which will colligate 16 different levies, is coming in effect from July 1.
The CBEC has given information that salt, milk, gur, egg, curd, unpacked food grain and paneer, fresh vegetables, unbranded atta, maida, besan, honey, besides education and health services have all been relieved from GST. These commodities will be nontaxable through GST.
Earlier, Revenue Secretary Hasmukh Adhia had admitted that the government is going to launch a massive awareness campaign to educate the public about GST ,so that they will not be fleeced by traders in name of the new tax.“Because we have taken care to ensure that the average tax incidence on commodities does not go up…there may be some traders who will try to tell the consumers that under the changed GST rates they will have to pay more. We have to educate them.”Hasmukh Adhia had said nearly one month back.
Items like tea, sugar, coffee beans, edible oil, packed paneer, milk powder, brooms, domestic LPG and kerosene have been put in the 5 percent bracket.“81 percent of the items to fall in/below 18 percent slab. Only 19 percent of the goods will attract GST above 18 percent,” the CBEC said.
The items listed in 12 % slab are butter, ghee, mobiles, cashew, agarbatti, umbrella, fruit juice and sausages. Hair oil, soaps, jams, soups, ice cream, capital goods and computers will attract a 18 percent levy. Those placed in the 28 percent slab are custard powder, shampoo, perfume, make up items, chewing gum, motorcycle, cement and consumer durables.
The government has already planned and declared that the gains of a reduced tax rate after GST should be benefited the consumers in the form of price reduction.
The GST Council has also planned to set up a committee collaborating central and state tax officers to react on the complaints of profiteering by industry post GST.