GST Exemption List to be Kept Short – Less than 100 Items

GST Exemption Limit

The Centre and States are expected to keep the exemption list small – around 100 items from the current 299 items kept exempt by the Centre and 99 items by the states. Common goods consumed by masses will be kept in the final list. The goods which are categorized as ‘common goods’ are salt, primary produce, fruits and vegetables, flour, bread, milk, eggs, tea, and prasad sold at temples.

The GST Council will keep certain essential services such as healthcare and education out of the tax net. A final call will be taken up on the issue this week by the Council. Furthermore, services which were exempted under differential taxation; will be brought under the ambit of taxation to broaden the tax base. For example, budget hotels which had tariffs below Rs. 1,000 did not incur service tax but after GST implementation may do so.

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