No decision made on the tax rates for gold and gold jewellery.
He said as a member of the GST council, Odisha had been actively participating in the design of the legislation.
Food grains will cost less from July 1 when the nation-wide Goods and Service Tax (GST) is rolled out as the GST Council on Thursday chose to exempt the daily-use commodities from the levy.
Telecom and financial services will attract 18% GST rate. This, as per a PwC study, would have led to a 9 per cent to 12 per cent increase in the cost of air travel for passengers.
IT, telecom and financial services will be taxed at the rate of 18 per cent.
Pastries and cakes, pasta, ice cream and soups, instant food mixes, betel nut, vinegar and sharbat will attract a 18 per cent tax, while the highest tax of 28 per cent will be levied on chewing gum, chocolates, custard powder and waffles containing chocolate.
The current tax on toothpaste and soaps is close to 28%. Coal which currently attracts 11.69 percent tax, will now fall under the 5 percent category when the new scheme is implemented. Net effect of GST is not going to be inflationary. "We are yet to take a decision on that", he said.
"Once input credit starts, it will have a positive impact", he added.
The GST council will meet again on June 3 in New Delhi to finalise residual issues before rolling out the uniform tax regime across the country on July 1. The Goods and Services Council today has released new tax rates for 1,211 items in which majority of items being kept lower than 18 per cent rates.
Thus an overwhelming 81 per cent of goods will attract tax of 18 per cent or below. In some cases, such as aerated drinks, the council had cleared a 12 per cent cess in addition to the luxury tax rate of 28 per cent.
As soon as the meeting got under way, Jaitley informed the gathering the demise of Union Environment Minister Anil Dave, the spokesman said. "It is has to evaluated whether such hotels will increase prices", said Anita Rastogi, indirect tax partner at PwC.
The GST structure will be replacing the central excise duty and service taxes that are collected by the Central government. These will now attract 18% GST, nearly a 10% slash from the current rate of taxation.
Telecom sector to be taxed at 18%.
Auto manufacturers body Society of Indian Automobile Manufacturers (SIAM) on Friday welcomed the new GST (Goods and Services Tax) rates on automobiles.
With the government announcing that 7 per cent of items will remain under the exempt category, the number of items which enjoy zero per cent tax will come down drastically. In a crucial meeting, the GST council in Srinagar today finalised the rates at which various commodities will be taxed once the one tax for all kicks in from July 1.
CRISIL Research felt the benefits of GST on business practices and company strategies will only be seen in the medium term.
Of two, efficiency in goods will be higher than that in services, Crisil said in a note.