Gold will be taxed at 3 per cent under the Goods and Services Tax (GST) regime, Finance Minister Arun Jaitley said on Saturday ending the suspense on the item dear to Indians even as the GST Council completed the exercise of bringing all items under GST's 4-slab tax structure.
"Gold, which currently has an excise of 1 per cent and states charge 1 per cent VAT…keeping these various taxes in mind, and after a lot of debate in the GST Council, we have finally reached a consensus on 3 per cent for gold and gold jewellery," Finance Minister Arun Jaitley, who heads the GST Council, told reporters here after the 15th meeting of the Council.
Besides, rough diamonds have been levied a nominal tax of 0.25 per cent in order "to keep the audit trail" of transactions, he said.
While beedi leaf , or "tendu" will be taxed at 18 per cent, beedis will be levied tax at 28 per cent.
"Beedi and beedi leaf will not attract cess over and above these taxes, but cigarettes will have cess," Jaitley said.
Footwear costing below Rs 500 will be taxed at 5 per cent, while those costing more will attract 18 per cent tax.
Regarding items of use by the common man, the minister said that even manufactured apparel costing less than Rs 1,000 would be taxed at 5 per cent