GST rates: Footwear below Rs 500 in 5% slab; gold rate yet to be fixed

The GST council had postponed the decision to June 3 on the GST rate for gold as the council was unable to fix due to the difference of opinion among states.

The Goods and Services Tax Council has finalised tax rates for most of the six remaining items, while discussions were continuing on the rate for gold at the Council's meeting here on Saturday, Jammu and Kashmir Finance Minister Haseeb Drabu said.

"Footwear costing below Rs 500 will be taxed at 5 per cent, while those costing more will attract 18 per cent tax," he said.

"Cotton yarn and textiles have been taxed at 5 per cent, while readymade garments will attract 12 per cent," Drabu told reporters waiting outside the meeting venue here.

Eralier, Kerala Finance Minister Thomas Isaac told reporters, "All the states have agreed on the implementing of GST from July 1." Today GST council had met to fix rates of commodities like gold, footwear, textiles, agriculture equipment.

The council had postponed the decision to June 3 on the GST rate for gold as the council was unable to fix due to the difference of opinion among states. The consuming states wanted a two per cent GST on jewellery, while other states stuck with five per cent. According to reports, the GST Council had proposed four per cent as a consensus but a decision could not be taken.

The GST regime sees 1211 items under various tax slabs with a broad range of tax rates between 5 and 28 percent, with some essential goods including food items and other goods such as stamps, judicial papers, printed books, newspapers, etc are exempt according to the government announcements.

(With agency inputs)