India Rice to become expensive post-GST.

From July 1, post-Goods and Services Tax (GST) introduction the rice is set to become expensive by three to five rupees per kilogram. India is the world largest producer of rice apart from Pakistan and Thailand, accounting 20 per cent of world production. As per the GST Act, branded and packaged rice attracts 5 per cent tax, in addition to the tax levied by the state government at 1.5 per cent; the total tax would be 6.5 per cent per kilogram. In fact, the price of all varieties of rice is expected to increase. The rice cultivating states mainly Karnataka, Andhra Pradesh, West Bengal and Punjab will be affected by the change of tax rate. Most of the states are charging only 1.5 per cent tax, this is the first-time rice will get taxed at 5 per cent.