Reducing the rate of commodity and services tax brings relief to the daily component; Check the common questions about a new rate structure

Finance Minister Nermalla Sitaramann revealed on Wednesday the most important reform of the commodity and services tax since its launch in 2017, as she presented a simple sliding structure under the so -called “GST 2.0”. The repair cuts the basic goods, medicines and cars, while creating a luxury panel for luxury and sin products.

Daily home tools will see some of the largest discounts. A tax on soap, water, shampoo, toothbrush, table tools and kitchen tools will now be imposed by 5 % instead of 18 %. Basic food products such as UHT and Paneer and the entire Indian bread were completely exempted, as it decreased from 5 % to zero. Canned foods such as Namkeen, Bhujiya, Sauces, pasta, corn, butter and ghee will also move to a 5 % bow – which makes cooking and snacks more affordable.

To address common concerns, the Ministry of Finance has released the following common questions about new commodity tax rates and services:

Common questions about revised GST rates

Q: UHT milk (very high temperature) has been exempted. Does the UHT exemption cover the plant -based milk?
All dairy milk, unlike UHT milk, was already exempt from commodity and services tax. Thus UHT milk was exempted to provide the same tax transaction for similar goods. Vegetable milk drinks, with the exception of soy milk drinks, attracted 18 % of the commodity and services tax while the soy milk drink attracted 12 %. The commodity and services tax rate has now been reduced on vegetable milk drinks and soy milk drinks to 5 %.

Q: What is the reason for the average of 40 % on “other non -alcoholic drinks”?
The principle behind the last average rationalization exercise is to maintain similar goods at the same rate to avoid classification and conflict issues. This was also applied to “other non -alcoholic drinks”.

Q: What is the rate of commodity and services tax on unspecified nutritional preparations in any of the time tables?
Unlimited food preparations in another place will attract the rate of goods and services tax 5 %.

Q: What is the reason for reviewing the commodity and services tax rate only on specific varieties of Indian bread?
The bread was already exempt while attracting pizza bread, Roti, Boruta, Paratha, etc. different rates. All Indian bread was exempt, with any name called, although only some goods were mentioned by an illustrative example.

Q: Why was the rate of soft drinks from fruit drinks or soft drinks with fruit juice increased?
These goods attracted to stop compensation as well as goods and services tax. Since it was decided to end the compensation tax, the tax has been increased to maintain the level of the pre -tax rate.

Q: Why is there a different tax transaction between Panir and other cheese?
Before rationalizing prices, Paneer was sold in non -packed and pre -named from the model that has already attracted its average. Therefore, the changes were made only regarding the plane provided in the pre -named model. Paneer is an Indian cottage cheese, mostly produced in the small sector. This measure aims to enhance Indian cheese.

Q: What is the reason for the differential tax treatment of natural honey and artificial honey?
This aims to enhance natural honey.