GST: Sugar, tea, coffee and milk powder to become cheaper - Hindustan Times
close_game
close_game

GST: Sugar, tea, coffee and milk powder to become cheaper

Hindustan Times, New Delhi | ByHT Correspondent
May 25, 2017 08:47 PM IST

The GST Council, which finalised the tax rates for most items last week, has fixed the levy at 5% for sugar, tea, coffee and milk powder.

Prices of sugar, tea, coffee and milk power may soften from July as the proposed goods and services tax (GST) will be lower than the present levies.

A waiter prepares cappuccino at a coffee shop.(Reuters photo)
A waiter prepares cappuccino at a coffee shop.(Reuters photo)

The GST Council, which finalised the tax rates for most items last week, has fixed the levy at 5% for sugar, tea, coffee and milk powder.

Hindustan Times - your fastest source for breaking news! Read now.

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

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

In case of tea and coffee, state VAT at 5% and other taxes works out to more than 7%. As against this, the proposed GST rate for tea and coffee is only 5%.

Instant coffee will attract higher tax rate.

Milk powder is now exempt from central excise duty but VAT at 5% and other taxes adds up to more than 7%, which is higher than the proposed GST rate.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business Newsalong withGold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, February 23, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On