July 1 will witness the biggest transition in tax reform as India ushers in the GST regime. A few weeks before, the GST Council, in its meeting on 11th June, revised rates for 66 items.

This meeting was held after representations from 133 industries demanded a revision in the rates for different categories of commodities and goods.

As per the applicable revised rates, packaged food items like pickles, toppings, ketchup, instant food mixes will be cheaper as the GST on these have been reduced from 18% to 12%. Medication for diabetics will be cheaper as Insulin has been moved from the 12% slab to the 5% slab.

School bags have been revised from the 12% slab to the 5% slab.

Household cutlery items will cost less from 18% to 12%. Computers, printers and CCTV have been moved from the 28% slab to the 18% slab.

Small scale manufacturers and traders will be the gainers as those with an annual turnover of less than 20 lakh will not have to pay any tax. Entrepreneurs whose turnover is between Rs. 20 – Rs. 75 lakkh will need to pay a anominal tax under composition scheme.

Under the composition scheme, a trader will need pay 1% tax while a manufacturer will have to pay 2% tax and restaurant owners 5%.

Source: Media Reports