Supreme Court: Uncrystallized Contractual Damages Not an Operational Debt under Section 9 IBC  ||  Supreme Court: Interest Accrued in Suspense Account After NPA Classification is Recoverable as Debt  ||  Supreme Court: S.69 GST Arrest Order with “Reasons to Believe” Must Precede Arrest  ||  Supreme Court: Winding-Up Proceedings Period Cannot be Excluded under Section 14 Limitation Act  ||  Supreme Court: Separate Appeals Unnecessary Against Common Judgment on Suit and Counterclaim  ||  Supreme Court: Unsuccessful Party Can Seek Post-Award Section 9 Relief in Exceptional Cases  ||  Delhi HC Rejects Black Money Act Challenge, Imposes Rs. 60,000 Costs over Prosecution Avoidance  ||  Delhi HC Affirms Teacher's POCSO Conviction, Urges Schools to Encourage Children to Speak Up  ||  Kerala HC: NGO Funding Peaceful Protests Can't Justify FCRA Renewal Denial  ||  Delhi HC: Courts Cannot Judge Sufficiency of Material For Issuing Look Out Circular    

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- (Press Information Bureau) (25 May 2017)

MANU/PIBU/0565/2017

Indirect Taxation

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%.

Tags : GST   RATES   PRODUCTS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved