Thursday, 3 August 2017

Chocolate mithais to attract 5% GST, Centre clarifies

Rates for kulfi, dosa batter, portable toilets spelt out

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Sandesh, with or without chocolate, will be taxed at 5 per cent, the government clarified on Thursday along with the goods and services tax (GST) rates for other items, including rakhis, idli-dosa batter and kulfi.
However, ambiguity persisted over whether the tax rate for plastic furniture would be 28 per cent as furniture or 18 per cent as plastic items. The sharp jump in tax on car leasing is also expected to be taken up in the GST Council meeting on Saturday.
“Sandesh, whether or not containing chocolate, will attract 5 per cent GST,” the government clarified on Thursday.

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The clarification comes amid reports that sweet shops have discontinued chocolate barfis and chocolate sandesh. The GST rate on chocolates is 28 per cent and Indian sweets are taxed at 5 per cent. Although milk is exempt in the GST, khoya, or concentrated milk, will attract 5 per cent GST.


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Sweet shops in Kolkata were in panic over different GST rates based on the types of sweets and ingredients. Now the government has clarified that the GST rate on all Indian sweets is 5 per cent,” said Archit Gupta, founder and chief executive officer of ClearTax.

The GST was implemented on July 1 and subsumed most indirect taxes such as excise duty, service tax and value-added tax.
The government also clarified that kulfi — the Indian frozen dessert — would attract 18 per cent GST, like ice-cream. Besides, idli-dosa batter would attract 18 per cent GST under the food mixes category, it said.



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