The GST Council on Saturday clinched an agreement to fix rates for almost all items, which will marginally push up prices of gold, cheaper biscuits and most readymade garments.
Lower-end garments as well as footwear have been put in a separate bracket to ensure that they are not overly burdened. In addition, army canteens will continue to enjoy the benefit of lower taxes, finance minister Arun Jaitley said.
The Council, headed by Jaitley and state finance ministers, also finalised two pending rules and decided to put in place a panel of officers to keep tabs on unnecessary price spikes, setting the stage for a switchover to the new tax regime from next month.
“We are prepared and confident of being able to stick to the target date (of July 1),” Jaitley said. To a query on West Bengal’s opposition citing lack of preparedness, the minister said that “others didn’t share that view”.
The ministers resolved the issues left over from last month’s meeting in Srinagar which will mean that packed food items, which bear a trademark, will see a 5% levy, while bidis will be taxed at 28% with no cess like cigarettes.
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