GST rates fixed. Read how prices of items will change from 1 July


Motorcycles of more than 350 cc engine capacity will attract a total of 31 per cent tax under the GST regime, same as the tax incidence on private aircraft and luxury yachts.

According to the rate structure finalised by the GST Council in Delhi, all cars, buses, trucks and motorcycles including moped as well as personal aircraft and luxury yachts will attract a peak Goods and Services Tax (GST) of 28 per cent.

All classes of cars and SUVs as well as motorcycles of more than 350 cc engine capacity will also attract an additional cess.

The cess for motorcycles with more than 350 cc engine has been kept at 3 per cent, taking the total incidence of taxation to 31 per cent.

This is the same as that for private aircraft and luxury yachts.

Small cars of less than four meter length and with petrol engine of up to 1200 cc will attract 1 per cent cess on top of the peak rate.

Small diesel cars with engine of less than 1500 cc will be charged 3 per cent cess.

Mid-sized cars, SUVs and luxury cars will all attract 15 per cent cess, same as that for buses and vans that can carry more than 10 persons.

Hybrid cars of more than 1500 cc engine would also attract 15 per cent cess.

Aerated drinks and lemonade will attract 12 per cent cess on top of the peak rate while pan masala gutkha will be charged 204 per cent cess on top of the peak rate from July 1, the scheduled date for rollout of the GST.

The Centre and states have agreed to impose cess on demerit and luxury goods under the GST regime, over and above the peak tax rate of 28 per cent.

On tobacco, the cess will vary from 71-204 per cent.

Also, scented zarda and filter khaini will attract 160 per cent cess, while for pan masala gutkha it would be 204 per cent.

Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 per cent plus Rs 1,591 per 1,000 sticks.

Non-filter cigarettes exceeding 65 mm but not exceeding 70 mm will attract cess of 5 per cent plus Rs 2,876, while that for filter cigarettes the levy is 5 per cent plus Rs 2,126 per thousand sticks.

For cigars, a hefty levy of 21 per cent or Rs 4,170 per 1,000 sticks, whichever is higher, would be levied.

Branded gutkha will be slapped with a cess of 72 per cent, while smoking mixtures for pipes and cigarettes will attract a levy 290 per cent.

Besides, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.

Markets made a somersault of sorts today as the benchmark Sensex rebounded 209 points to 30,643 on the GST Council’s finalisation of tax rates for bulk of the items except six categories.

A firming trend at other Asian markets tracking rebound on the Wall Street on positive data supported the indices to recoup most of yesterday’s lost ground.

The BSE Sensex recovered 208.82 points, or 0.69 per cent, to 30,643.61. The gauge had declined by 223.98 points yesterday.

Similarly, the broader 50-issue NSE Nifty rose by 57.45 points, or 0.61 per cent, to quote at 9,486.90.

Foodgrains and common-use products like hair oil, soaps and toothpaste will cost less from July 1 when GST is due to be rolled out.

Coal India rallied 2.62 per cent, followed by NTPC and PowerGrid. The goods and services tax (GST) on coal has been brought down to 5 per cent form the current tax incidence of 11.69 per cent, making electricity generation cheaper.

The largest lender SBI rose 1.98 per cent to Rs 308.95 ahead of its earnings to be announced later in the day.

Other gainers that supported the recovery were ITC Ltd, Hindustan Unilever, ICICI Bank, Tata Motors, Axis Bank, Tata Steel, Hero MotoCorp, Lupin, ONGC, Bajaj Auto, Adani Ports and Reliance Industries, rising by up to 4.44 per cent.

In the Asian region, Hong Kong’s Hang Seng rose 0.30 per cent, Shanghai Composite rose 0.12 per cent and Japan’s Nikkei gained 0.19 per cent in early deals today.

The US Dow Jones Industrial Average ended 0.27 per cent higher yesterday.

(With PTI inputs)

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