GST Council | Goods & Services Tax Council | Indian GST CouncilGST Council- GST Rate Slabs

GST Council & Rate Slabs

On 18th October 2016, the Central Government has proposed various rate slabs in GST Council. It must be noted that the GST Council is meeting from 17th – 19th October 2016 to finalise GST rate slabs, Cess & concessions alongwith compensation.

GST Rate Slabs – The proposed GST rates  are as below :

i.6% – Food items and other necessities.

ii. 12% – Substantial Goods & Services 

iii.18% – Rest Of Goods & Services 

iv.26% – Luxury goods 

v. 4%- Precious metals like gold .

Cess

Aditionally, Cess has been proposed for demerit goods included selected luxury cars, tobacco , pan masala etc towards compensation to states.

Crucial Discussions

The following crucial discussions also hint a lot on GST rate structure  :

a. Concept of High GST Rate Limit – Highest Rate Limit Proposal @ 30% came from Kerala Finance Minister Thomas Issac with a condition that  state government can either  exempt or levy lower tax rates even highest slab is fixed.

b. Food Items – Special treatment to certain food items is likely to continue and it will be exempted from the tax as well.

c. Common Usage – 50 per cent of the items of common usage will be exempted.This will be also a measure to check inflation. 

Average GST Rate For Goods & Services

Goods – Average GST rate seems to be @ 6% & 12 % . Whereas, FMCG products shall attract GST rate @ 26% .

Services – GST rate may be @ 12% or 18% . 

For advance level GST , keep referring www.gstprofs.in