GST: Gold to be taxed at 3%, beedis at 28%

New Delhi, June 3: The GST Council on Saturday completed the exercise of bringing all items under a 4-slab tax structure with gold to be taxed at 3 per cent, ending the suspense on the item dear to Indians, even as all states barring West Bengal agreed on the rollout of the new indirect tax regime on July 1. “Gold, which currently has an excise of 1 per cent and states charge around 1 per cent VAT...keeping these various taxes in mind, and after a lot of debate in the GST Council, we have filly reached a consensus on 3 per cent for gold and gold jewellery,” Fince Minister Arun Jaitley, who heads the GST Council, told reporters here after the 15th meeting of the Council.

Besides, rough diamonds have been levied a nomil tax of 0.25 per cent in order “to keep the audit trail” of transactions, he said.

While beedi leaf, or “tendu” will be taxed at 18 per cent, beedis will be levied tax at 28 per cent.

“Beedi and beedi leaf will not attract cess over and above these taxes, but cigarettes will have cess,” Jaitley said.

Footwear costing below Rs 500 will be taxed at 5 per cent, while those costing more will attract 18 per cent tax.

Regarding items of use by the common man, the minister said that even manufactured apparel costing less than Rs 1,000 would be taxed at 5 per cent

Revealing that textiles was a major topic of discussion at the meeting as it is a mass consumption item, he said that while cotton and all other tural fibres are in the 5 per cent bracket, “man-made” fibre will attract a levy of 18 per cent.

All yarn will be taxed at 5 per cent, subject to man-made fibres being charged at 18 per cent.

“Fabric of all categories will have 5 per cent tax, while for ‘made-up apparel’ it will be 12 per cent,” Jaitley said.

“Packaged food items sold under registered trade marks, which are sold at a much higher price (than food) would carry a rate of 5 per cent,” he added.

The Fince Minister also said that biscuits, both of the cheaper and more expensive varieties, would be taxed at 18 per cent. (IANS)