Tea at 5%, chewing tobacco 160% as India finalises GST rates

Jaitley: ‘The overall impact is not inflationary.’ – Reuters

NEW DELHI: Tea will be taxed at 5% and chewing tobacco will face a 160% levy after India finalised most rates for a new goods and services tax, clearing the way for the biggest shakeup in the nation’s tax system since independence in 1947.

Rates for more than 500 services and 1,200 goods were fixed, or 80% to 90% of items were slotted into the GST’s five broad rates in meetings on Thursday and Friday between the government and state ministers as the country races to meet the July 1 implementation deadline.