Page 43 - Banking Finance August 2017

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tax brackets, cars will attract the top rate as also a cess in cent levy, as per the items list put on CBEC website.
the range of 1 to 15 percent on top of it. Small cars will be
charged 1 percent cess on top of 28 percent tax, mid-sized GST on coal has been brought down to 5% from the current
and luxury cars will attract cess of 15 percent on top of the tax incidence of 11.69%, thereby making electricity genera-
peak rate. tion cheaper.

It is also learnt that while meat, fresh vegetables, honey, Common use products like hair oil, soaps and toothpaste will
jaggery, prasadam, kumkum, bindi, pappad and contracep- be charged with a single national sales tax or GST of 18 per
tives have been exempt from GST levy, items like pizza bread, cent instead of present 22-24 per cent tax incidence through
sevaiya, condensed milk, frozen vegetables will attract 5 per- a combination of central and state government levies
9. A bird's eye view of GST Rates for goods - as decided GST Council-few instances

GST Rates for certain Goods as decided by GST Council on 18-5-2017 - A few items for reference
Exempted Items 5% GST 12% GST 18% GST 28% GST
Food grains, gur, milk, Sugar, Tea, coffee, Butter, Ghee, Hair oil, soap, Consumer durables,
eggs, curd, unpacked Coal, edible oil, milk mobiles, cashew, toothpaste, capital cars, cement,
paneer, natural honey, food for babies, almonds, sausages, goods, industrial, custard, chewing
fresh vegetables, atta, skimmed milk powder, fruit juice, packed intermediaries, gum, pan masala,
basan, maida, Prasad, condensed milk, coconut, water pasta corn flakes, perfume, shampoo,
vegetable oil, common packed paneer, agarbatti, biogas, jams, soups, ice makeup, fireworks,
salt, Fish Seeds, Betal newsprint, umbrella, medicinal grade cream, toilet and motorcycles, avgas,
canejaggery Brooms, Beet sugar, hydrogen facial tissues, iron hair cream, hair dyes,
natural graphite, chalk, peroxide, iodine & steel, fountain prepared explosives
natural calcium, pen, Indian katha,
phosphates, thorium Fluorine, chlorine,
oxalate bromine,
artificial waxes

10. What logic or idea has been followed that there is no increase (in burden) on any commodity. On
many commodities, there is a reduction in tax rates and tax-
by council in deciding rate structure? on-tax will also go away, lowering the burden. Justifying the
According to Sri Arun Jaitley, "the Centre and states have rates he also said that "One criterion in mind is that the
decided on rates for specific products which may lead to overall impact should not be inflationary ... We are banking
lower prices for a majority of products of mass consump- on GST checking evasion and buoyancy in collection".
tion. The idea is to ensure that the impact of GST is not
inflationary. Rates on 1,211 items were finalized by the GST In the next issue we will discuss other aspects of Levy and
council with 81% facing a levy of up to 18%". He also added Collection of Tax under GST Regime.

Rise in online banking transactions

As a result of price cut on electronic fund transfers, the State Bank of India reported rise in NEFT and RTGS transaction
by 75%, assisting nearly 5.27 crore customers. As per the revised charges, the NEFT fee
for funds transfer up to Rs 10,000 has been halved to Re 1 and to Rs 2 for transfers up to
Rs 1 lakh. For transfers between Rs 1 lakh and Rs 2 lakh, the NEFT charge will be cut to Rs
3 from Rs 12. For transfers above Rs 2 lakh, the fee has been fixed at Rs 5 against Rs 20
now. For RTGS transactions, the charges will be Rs 5 for transactions between Rs 2 lakh
and Rs 5 lakh against Rs 20 now. If a customer transfers more than Rs 5 lakh through this
route, the new fee will be Rs 10 against Rs 40 at present. Charges would be different if the funds are transferred in
bank branches through executives.

BANKING FINANCE | AUGUST | 2017 | 43

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