The government rolled out the Goods and Services Tax (GST) on July 1, 2017, amalgamating 17 different central and state taxes including excise duty and sales tax or VAT. On a monthly spending of Rs 8,400 on these regular use items, the tax paid under GST is Rs 510. The source said that wheat and rice have been exempt from tax under the GST as against 2.50-2.75 per cent tax incidence previously. Also namkeens and sweets are now taxed at 5 per cent, as against 12 per cent/7 per cent earlier. Also tax rate on washing powder and tiles has come down to 18 per cent from 28 per cent earlier.

Source: Mint December 16, 2018 11:19 UTC