The GST Council on Thursday finalised a 4-tier tax structure with some tinkering of the Centre’s proposal. The panel has approved GST rates at 5 per cent, 12 per cent, 18 per cent and 28 per cent, Finance Minister Arun Jaitley said on Thursday.
The Centre had proposed 4-tier tax structure of 6, 12, 18 and 26 per cent, the peak rate being for FMCG and consumer durables.
Here is what all FM Arun Jaitley said after GST council meet:
#White goods & others that were taxed at 30-31% will now be taxed at 28% but with a rider
#Considering the inflation impact of having one standard rate, there’ll be 2 standard rates of 12% and 18%
#Aerated drinks, Pan masala, luxury cars, tobacco products to be taxed higher than 28%
#2nd will be 5% item; draft proposal said 6%,but we decided it’ll be 5% duty & these will be items of mass consumption used by common ppl
#5% GST rate on items of mass consumption. Additional revenue from 28% slab will be used for 5% slab
#Rate structure will be as follows: Zero tax rate on food grain used by common people
#Panel has approved GST rates at 5%,12%, 18% and 28%
#2 big items discussed-rate structure and compensation formula; and cross empowerment
#GST preparation is going on as per schedule