On the second day of the Goods and Services Tax (GST) Council meeting on Friday, government sources in Srinagar, where the meeting is being held, India's Finance Minister has said that most of the services would be taxed at the rate of 18 per cent under the GST regime. As result Mobile bills go up and cars bikes also become costlier.

The GST era brings bad news for Himachal Pradesh and Uttarakhand.

States like Himachal Pradesh and Uttarakhand offered similar benefits to attract investments. Under the GST regime, goods produced in such areas will no longer enjoy lower tax rates.

Experts said, companies may need to adjust their production capacities and realign geographical distribution of their manufacturing to bring down the impact.

ZERO tax will be imposed on the following items :

Fresh meat, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, stamps, judicial papers, printed books, newspapers, bangles, handloom etc.

5 per cent tax will be imposed on the following items :

Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 percent.

12 and 18 per cent tax will be imposed on the following items :

Frozen meat products, butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, umbrella, sewing machine, cellphones, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.

28 per cent tax will be imposed on the following items :

Chocolate not containing cocoa, pan masala, aerated water, paint, deodorants, shaving creams, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, automobiles, motorcycles, aircraft for personal use, and yachts will attract 28 per cent tax - the highest under GST system.