Gold at 3%, biscuits at 18%; GST Council decides rates for most remaining items

The Goods and Services Tax (GST) Council has finalised the fitment of tax rates for most of the six remaining items on Saturday, Jammu and Kashmir Finance Minister Haseeb Drabu said.

Speaking in New Delhi, Finance Minister, Arun Jaitley said packaged food with regard to trademarked items will attract 5% tax rate. He further added gold will taxed at 3%.

Rough diamonds would be taxed at 0.25% while biscuits would be taxed at 18% and agricultural machinery would have 5% or 12% rates as per their categories.

Man-made yarn will be taxed at 18%, Jaitley said.

On anti-profiteering under GST regime, Jaitley said that the anti-profiteering body would comprise of federal and state officials.

The GST Council is scheduled to meet again on June 11 before the GST rollout on July 1, Jaitley added.

"Cotton yarn and textiles have been taxed at 5%, while readymade garments will attract 12 %," Drabu told reporters waiting outside the meeting venue here. "Footwear costing below Rs 500 will be taxed at 5%, while those costing more will attract 18% tax," he said.

"All biscuits have been put under the 18 % bracket," he added.

Drabu also revealed that beedis were being discussed, and while it may be taxed at 28% (without cess), beedi leaves could attract 18 %.

Kerala Finance Minister Thomas Isaac told reporters earlier that all states have agreed on the rollout of the GST on July 1.

The Council has come together here for its 15th meeting to finalise the rate fitment of the remaining six items, including gold.

The fitment of 1,211 items was decided at the Council`s previous meeting held last month in Srinagar.

(With inputs from Bloomberg)