From gold to footwear, GST Council fixes rates

The GST Council yesterday decided to tax gold at 3 per cent, footwear below Rs 500 at 5 per cent and biscuits at 18 per cent under the goods and services tax, which will be rolled out on July 1

Finance Minister Arun Jaitley at the GST meeting in Delhi. Pic/PTI

The GST Council yesterday decided to tax gold at 3 per cent, footwear below Rs 500 at 5 per cent and biscuits at 18 per cent under the goods and services tax, which will be rolled out on July 1.

The council, chaired by Finance Minister Arun Jaitley, at its 15th meeting also decided on the rates of yarns, agriculture machinery, apparels and rough diamonds, among others.

Jaitley said footwear costing below R500 will be taxed at 5 per cent, while the pricier ones will attract an 18 per cent levy. Currently, footwear priced R500-1,000 attracts a 6 per cent excise duty. Besides, states levy VAT on it.

Readymade garments will attract a levy of 12 per cent and solar panels 5 per cent.

Tendu leaves and beedis will be taxed at 18 per cent and 28 per cent, respectively, the minister said, adding that there will be no cess on beedis.

Rough diamonds will attract a GSTâu00c2u0080u00c2u0088of 0.25 per cent.

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