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  Business   In Other News  26 May 2017  GST rates will be lower for sugar, tea

GST rates will be lower for sugar, tea

THE ASIAN AGE.
Published : May 26, 2017, 1:37 am IST
Updated : May 26, 2017, 1:37 am IST

Earlier this week, finance ministry had said taxes on entertainment, cable and DTH services will come down under the GST to be rolled from July 1.

As against this, the proposed GST rate on sugar is only 5 per cent, which is 3 per cent less than present incidence of taxes, it said.
 As against this, the proposed GST rate on sugar is only 5 per cent, which is 3 per cent less than present incidence of taxes, it said.

New Delhi: Finance ministry on Thursday said that the GST tax rates on sugar, tea, coffee (other than instant coffee) and milk powder would be much lesser than the prevailing  tax rates.

“Sugar attracts specific central excise duty of Rs 71 per quintal plus sugar cess of Rs 124 per quintal, which translates to ad valorem rate of more than 6 per cent. Including incidence on account of account of CST, octroi, and entry tax among others, the present total tax incidence would work out to more than 8 per cent,” said finance ministry.

 

As against this, the proposed GST rate on sugar is only 5 per cent, which is 3 per cent less than present incidence of taxes, it said. The ministry said that tea and coffee attract zero central excise duty and VAT rate of 5 per cent.

“Considering embedded taxes in production of tea and coffee and the incidence on account of CST, octroi and entry tax etc., the present total tax incidence works out to more than 7 per cent. As against this, the proposed GST rate for tea and coffee (other than instant coffee) is only 5 per cent,” it said.

The ministry milk powder too attracts zero central excise duty and 5 per cent VAT. After taking  embedded taxes in production of milk powder and other taxes, the present total tax incidence works out to more than 7 per cent on milk powder.

 

As against this, the proposed GST rate on milk powder is only 5 per cent, it added.

Tags: finance ministry, gst, milk powder
Location: India, Delhi, New Delhi