26th May 2017
It’s a good news for the people who enjoy tea and coffee more. People have can add more taste on their tatstebuds.GST will lower down price of Tea and Coffee after July 1. It is also expected that the ingredients(powder and sugar) used in Tea and Coffee will become more cheaper as the statement given by the Finance Ministry. GST rates were discussed and Finalised by the state finance ministers council in Srinagar last week.
Presently, Tea and Coffee attract nil central excise duty and VAT (value-added tax) rate of 5 percent. In case when we consider embedded taxes production of tea and Coffee the incidence on account of CST (central sales tax), octopi and entry tax, the present total tax works out to more than 7 per cent
Presently, sugar attracts specific central excise duty of Rs 71 per quintal plus a cess of Rs 124, which translates into ad valorem rate of more than 6 per cent. If CST, octroi, and entry tax are factored in, the total incidence works out to more than 8 per cent.
As per the report from the ministry the proposed GST rate on sugar is only 5 per cent. Dairy powder or Milk Powder attracts nil as the central excise duty and 5 per cent VAT. Things have cheaper for Tea and Coffee Lovers.
GST is expected to be the single biggest tax reform since India's independence. GST will eliminate various central and state taxes that are levied on products and services currently bringing India under a single tax regime. Tax slab has been prepared according to the goods.
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