GST

GST Tax rates would be lesser for Sugar Tea and Coffee and Milk Powder

GST Tax rates would be lesser for Sugar Tea and Coffee and Milk Powder. Proposed GST Tax rates would be much lesser than the prevailing incidence of taxes 

Proposed GST Tax rates would be lesser than the prevailing taxes in case of Sugar, Tea and Coffee (other than instant coffee) and Milk Powder; Present incidence of taxes on sugar is 8% while proposed GST rate on Sugar is only 5% i.e. 3% less;

Similarly, present incidence of taxes on Milk Powder, Tea and Coffee (other than instant coffee) is 7% while proposed GST rate on these items is only 5%.

Proposed GST Tax rates would be much lesser than the prevailing incidence of taxes in case of Sugar, Tea and Coffee (other than instant coffee) and Milk Powder. Details in this regard are as follows:

 
1.  Sugar: Sugar attracts specific central excise duty of Rs.71 per quintal plus 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 etc., the present total tax incidence would work out to more than 8%. As against this, the proposed GST rate on sugar is only 5% i.e. 3% less than present incidence of taxes.
 
2. Tea and coffee (other than instant coffee): Tea and coffee attract Nil central excise duty and VAT rate of 5%. Considering embedded taxes in production of tea and coffee and the incidence on account of CST, octroi and entry tax etc., the present total tax incidence works out to more than 7%. As against this, the proposed GST rate for tea and coffee (other than instant coffee) is only 5%.
 
3. Milk powder: Milk powder attracts Nil central excise duty and 5% VAT. Considering embedded taxes in production of milk powder and the incidence on account of CST, octroi, and entry tax etc., the present total tax incidence works out to more than 7%. As against this, the proposed GST rate on milk powder is only 5%.
 
*****
Share
Leave a Comment

Recent Posts

  • Income Tax

NSDL latest e-TDS TCS RPU Version 1.2 for Tax Year 2026-27 – Download

NSDL latest e-TDS TCS RPU version 1.2 for Tax Year 2026-27 NSDL has revised the e-TDS TCS RPU utility for…

7 minutes ago
  • Income Tax

Deprecation allowable u/s 11(6) if capital expenditure not claimed as application of income

Assessee entitled to claim deprecation u/s 11(6) if corresponding capital expenditure was not claimed as application of income - ITAT…

17 hours ago
  • Income Tax

CBDT cautions CAs issuing certificates in Form 15CB/Form146 to exercise due care & diligence

Chartered Accountants issuing certificates in Form 15CB/Form146 are expected to exercise due care, diligence and professional judgment – CBDT CBDT…

19 hours ago
  • Income Tax

Section 292C carry no presumption of correctness of seized documents contents against third party

Section 292C of the Income Tax Act 1961 indeed carries presumption of correctness of such seized documents contents but only…

3 days ago
  • Income Tax

Condonation of delay u/s 119(2)(b) for filing revised return to avail benefits u/s 44ADA

PCIT directed to consider condonation of delay u/s 119(2)(b) in filing revised return to availing benefits of section 44ADA In…

3 days ago
  • arbitration

Whether condition of pre-deposit prior to reference to Arbitration is arbitrary & violative of right to sue?

Whether condition of pre-deposit prior to reference to Arbitration is arbitrary and violative of the right to sue – Division…

3 days ago