GST NEWS
GST Rates Decided, 4 Slabs Ranging From 5 To 28%
GST Rates Decided, 4 Slabs Ranging From 5 To 28%
Nov 3, 2016

The new GST or Goods and Services Tax will range from 5 to 28 per cent in a four-bracket structure, Finance Minister Arun Jaitley said today.

1. The rate and scope of the long-delayed tax has been agreed upon today by the powerful GST Council, which consists of Mr Jaitley and his counterparts from different states.

2. The four GST slabs have been set at 5%, 12%, 18% and 28% for different items or services.

3. The brackets are steeper than the rates of 6, 12, 18 and 26% earlier proposed by the government.

4. The peak rate of 28% will apply to luxury goods. GST for tobacco products will be fixed at the level of cess that these products attract now5.

5. The Finance Minister pointed out that the average is lower than the 18% demanded by the opposition, in particular by the Congress.

6. Service Tax will go up from 15% to 18 %, said the Revenue Secretary.

7. The tax rate agreed upon today must be now be approved by parliament, which meets from November 19 for the winter session.

8. Parliament has to pass two bills related to GST in the winter session to be on track to roll out of the new indirect tax regime from April 1 next year.

9. Fitment or categorization of items for each slab will be done by officials and will then be approved by the GST council, Mr Jaitley said.

10. GST does away with indirect levies charged when goods cross state lines and unifies India into a single market.

Source :  NDTV

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