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Speaking at an event to mark the sixth anniversary of GST, Nirmala Sitharaman said that on many common use items, the tax rate under GST is much lower than before GST.
Reduced tax on these items&zwj
The finance minister said that items like milk, tea, milk powder, sugar, edible vegetable oils, spices and footwear costing up to Rs 500, irrespective of the relevant entity, will be taxed under GST from the earlier 6 5% tax is levied as compared to 10%. Sitharaman said GST on items like hair oil, toothpaste, soaps, perfumes and detergents was 28 per cent, which has been reduced to 18 per cent.
Only 12% GST on these items
The Finance Minister also informed that the average tax on electrical items of common use such as mixers, grinders, refrigerators, vacuum cleaners and televisions (27 inches) and washing machines was 31.5 per cent before GST and now it has come down to 12 per cent . These are no longer a luxury item, said Nirmala Sitharaman, but are used for household chores.
Increase in state coffers
The minister also told that after the implementation of GST, the revenue of the state governments has also improved. He said that the revenue of almost all the states has increased. The central government has also collected more amount than GST. The minister told that even after the transfer of compensation, there has been an increase in the revenue of the states.
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