GST rate structure of 5, 12, 18, 28 percent
Here are the latest updates in GST
In the latest update, four-tier GST rate structure of 5, 12, 18, 28 percent has been now announced by the GST Council.
Moreover, the Zero-tax rate will be applied to 50 percent of the items in the CPI basket, which include foodgrains used by the common man, says Arun Jaitley.
5% duty will be further levied on mass consumption items used by common people; 2 Standard Rates of 12%, 18% will be there in GST, added Arun Jaitley
Related : Union Cabinet Approves Setting Up Of GST Council
Items which are taxed at 30-31 percent (excise plus VAT) will be now taxed at 28 percent, said Jaitley.
Furthermore, the additional revenue from the highest tax slab is to be used in order to keep essential use items at 5% and transferring common items to 18%.
Related : West Bengal’s Special Assembly Session For GST Bill
The long-delayed tax, which would be transformed Asia`s third largest economy into a single market, could further boost revenues through better compliance. It can make the life simpler for the business that now pays a host of federal and state levels.
Introduce the national sales tax next spring
The brackets, which were discussed at a meeting of the GST Council overseeing plans to further introduce the national sales tax next spring, are steeper than the rates of 6, 12, 18 and 26 percent which were earlier proposed by the government.
Foodgrains are also likely to be exempted from the GST, and tobacco products could be further taxed at 40 percent, he said
Thomas Issac, State Finance Minister of Kerala has said that the council had yet to decide on the controversial issues of additional levies on luxury items and so-called “dual control” of tax administration by federal and state tax officials.
Finance Minister Arun Jaitley will be seeking parliamentary approval for bills later this month that would set the rate and scope of the GST. State assemblies must also to approve similar bills for the tax to enter force as planned next April 1