manjgu wrote:i mean was the GST team on drugs when they decided to have 28% on so many items !!! which are of daily use..non luxury. toothpaste..soap...fan..pumps..shitpots ( and this when we wanna encourage Swach Bharat and no open defacation) !!! I dont believe it. generally the lowest and highest tax slab will have less no with a bulge in between...but looks it was skewed so muchhh. Cement and paints still in 28% category... come on.
That rate is nominal rate on finl sale value. While effective rate is actually that minus the ICT which in some cases like houses can be actually more than this effectively making the item tax neutral. This reduction due to ICT should be reflected in reduction in sticker prices. As such when I checked last time, only a small percentage of items had more rate under GST thn they had previously when all taxes combined. This simple fact is lost on people, perhaps because previously those taxes mostly remained hidden while GSt shows up on the bill. Anyhow GST was by design tax neutral, AFAIK only reall increase in tax rate for common man was hike of ST from 15 to 18%. Cement for example had 26-27% min tax even before GST. Without telling what was tax incidence preGST, there is no point talking bout GST rates, neither without considering effect of ICT which was only available partially eg CENVAT.
Please try to dig out what was net tax impact based on these factors on items u listed above.
To be fair no one knew how much would be tax collection beforehnd. Now that GSt council has data for a Q they perhaps could afford to reduce some tax due to net increase in tax collection.