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GST Rates Fixed – Gold costlier; Biscuits, Textiles Cheaper

Gold jewellery become more expensive

The GST Council decided the rates of the remaining items which can be termed as a mixed bag. Gold and gold jewellery is set to become more expensive as it will attract a tax levy of 3 per cent in place of the current tax incidence of 2 per cent. Input tax credit however can be claimed on manufacture of gold jewellery.

Biscuits, footwear and apparel under Rs. 1,000 will be cheaper under the One Nation, One Tax regime. Biscuits would be charged at 18%; footwear costing up to Rs. 500 will be taxed at 5% and those above Rs. 500 will attract a levy of 18%.

Coming to the textiles sector, silk and jute have been kept exempt from GST; cotton, natural fibre and yarns will attract a levy of 5% while man-made fibre and yarns will be taxed at 18%. Man-made apparel costing up to Rs 1,000 will be charged at 5% tax instead of the current 7%. Apparel costing above Rs 1,000, will continue to attract tax levy of 12%.

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