Hotline: 1800 102 2007
X
Search Business Opportunities
May, 26 2017

Proposed GST rates on Sugar, tea, coffee, milk powder lower than present levies

At present, sugar attracts specific central excise duty of Rs 71 per quintal plus sugar cess of Rs 124 per quintal, which translates to ad valorem rate of more than 6%.

Sugar, tea, coffee and milk powder will cost less from July as the proposed goods and services tax (GST) will be lower than the present levies.

According to an official statement, “Proposed GST rates would be much lesser than the prevailing incidence of taxes in case of sugar, tea and coffee (other than instant coffee) and milk powder."

At present, sugar attracts specific central excise duty of Rs 71 per quintal plus sugar cess of Rs 124 per quintal, which translates to ad valorem rate of more than 6%.

The present total tax incidence including incidence on account of central sales tax, octroi, and entry tax would work out to more than 8% as against the proposed GST of 5%, which is 3% less than now.

The finance ministry said, "In the case of tea and coffee (other than instant coffee), both the commodities attract nil central excise duty and VAT rate of 5%. Considering embedded taxes in production of tea and coffee and the incidence on account of CST, octroi and entry tax the present total tax incidence works out to more than 7%. As against this, the proposed GST rate for tea and coffee (other than instant coffee) is only 5%."

It added, "Milk powder attracts nil central excise duty and 5% VAT now. The embedded taxes in production of milk powder and the incidence on account of CST, octroi, and entry tax work out to more than 7 per cent. As against this, the proposed GST on milk powder is only 5 per cent."

Comment
image
Related opportunities
  • Fitness Equipment Stores
    About Us: Body Mechanism, Informally known as BM, Is an Advanced..
    Locations looking for expansion New Delhi
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 5200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater DELHI New Delhi
  • About: Cha Bar offers this experience at Oxford Bookstores in..
    Locations looking for expansion New Delhi
    Establishment year 2000
    Franchising Launch Date 2017
    Investment size Rs. 30lac - 50lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • CAD/CAM/CAE & Multimedia
    About Us : Frameboxx Animation & Visual Effects offers skill-based curricula..
    Locations looking for expansion Maharashtra
    Establishment year 2008
    Franchising Launch Date 2008
    Investment size Rs. 20lac - 30lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Healthcare Products
    dr batra..
    Locations looking for expansion Maharashtra
    Establishment year 2012
    Franchising Launch Date 2012
    Investment size Rs. 20lac - 30lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities