Companies and products covered by India's consumption tax regime
Modi's announcement comes as India moves to simplify its GST structure, with a group of ministers preparing a report that will consider merging tax categories and lowering rates on some products.
The country currently levies GST at 5%, 12%, 18% and 28% on most goods and services, excluding gold and silver, and applies an additional levy on so-called demerit items such as cigarettes and high-end cars.
Below are current tax rates of the different categories, and products and companies that could be affected:
* Cars made by likes of Maruti Suzuki (MRTI.NS), opens new tab, Hyundai (005380.KS), opens new tab and Tata Motors (TAMO.NS), opens new tab are currently subject to a tax rate of 28%. Big and luxury cars have to pay higher additional levies than smaller cars.
* Consumer durables such as air conditioners and refrigerators fall in this tax category and any move could benefit sales of Samsung (005930.KS), opens new tab and LG Electronics (066570.KS), opens new tab
* Cigarettes, along with aerated drinks, attract additional levies. Horse racing clubs and gambling services, 5-star hotel accommodation also fall under this category.
* Personal care items like hair oil, toothpaste, ice cream, shampoos and deodorants.
* Mobile phones and industrial chemicals are also subject to this tax rate. Tax changes here could affect Apple (AAPL.O), opens new tab and Xiaomi (1810.HK), opens new tab
* Health and life insurance products
THE 12% CATEGORY
Most products in this category are likely to become cheaper, a government source has said. Consumer majors like Nestle (NESN.S), opens new tab to Hindustan Unilever (HLL.NS), opens new tab to Procter & Gamble (PG.N), opens new tab retail many products at this tax rate, which covers:
* Processed & packaged foods - butter, processed foods
* Dry fruits such as almonds
* Fruit juices, packed coconut water
* Ready-to-eat vegetable/fruit preparations, pickles, jam, jelly
THE 5% GST CATEGORY
* Household essentials like sugar, tea, edible oils, milk
* Footwear and clothes priced below $10
* Certain life-saving drugs
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Scottish Sun
3 hours ago
- Scottish Sun
Putin has laid cunning trap that makes Zelensky's White House visit a minefield… Russian leader knows the peace he wants
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Daily Mail
3 hours ago
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3 hours ago
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