New Delhi – Rakhi, is a sacred ceremony in India and it would not attract GST this year, says the GST officials. However, to avoid paying GST, one would have to choose the traditional rakhi made from thread. The same would not be applied on gold or silver rakhis. These would attract standard GST rate of 5%.
The GST Council has said that the items that are required for puja, including Kalava, would not attract any percentage of GST. Thus Rakhi which is a form of Kalava would not attract any GST.
The other rakhis would attract GST rate as per the constitutional rate. The material, which is used to create the rakhis, would be charged according to GST notice. While responding to questions, the Central Board of Excise has clarified as much.
The Council has also said that the Sandesh which is known as Bengali sweets would attract the normal 5% GST rate as per the notice. Whether the sweet contains chocolate or not makes no difference in the implementation of the tax. The sweets which are made from chocolate would attract 28% tax.
It is not only Sandesh and Rakhi; it is said that the nail polishes would attract GST rate of 28%. Bangles would not be exempted either. The bangles that are made from lac or shellacs would be charged 3% GST rate. Hair bands that are made from rubber would attract levy of 28%.
The ready-made batters like idli, dosa or kulfi would attract GST rate of 5%. Tamarinds would attract 12% GST only when bought dry from the market. The fresh tamarinds would not attract any GST rate.