GST Council began it’s two day meeting today to close on open issues such as rate structure, administration etc.
The most significant aspect of GST i.e. the applicable rates have been finalised wherein a four tier rate structure proposed by Centre has been finalised with a slight modification in rates. Centre had proposed 6%, 12%, 18%, 26%.
The rates finalised are – 5%, 12%, 18% and 28%.
Additionally, the FM said that the government has kept about 50 percent of products in the consumer basket, such as food grains, as “zero-rated”. Tobacco items to be taxed with cess of upto 40%.
White goods category, which is presently taxed at 30-31 percent level, will be under the 28 percent category. These, however, will come with riders. While the cars will be under 28 percent category, luxury cars will be taxed much higher.