GST council 4th meeting
The two-day meeting (held on 03rd and 04th of November) of the Goods and Services Tax Council (GSTC) was able to build consensus as to the GST rate for goods. The following has now emerged as the rate structure for goods in the GST regime:
GST Rate Slab decided in GST council 4th meeting
- 0% – for majority of the goods in the CPI basket (foodgrains, spices, etc.)
- 5% – for essential food items (ghee, butter, etc.) and mass consumption goods
- 12% – lower standard rate
- 18% – higher standard rate (soaps, etc.)
- 28% – for specific products such as cars, white goods, etc.
- 28% + Cess – for specific luxury products (luxury cars), tobacco products and others (including aerated drinks).[ Cess will have a limited shelf-life of five years, and is meant to meet any shortfall in States revenues (which the Centre will have to compensate]
Items to be decided in GST council 5th meeting to be held in November (24th to 25th November 2016)
- GST rate to be applied on gold and bullion will be decided later.
- Exercise of classifying numerous products under different rates will be taken up in next meeting, and which job has been left to the committee of officers / secretaries. India Inc. will have to assist these officers in setting the rate appropriately for all products.
Listen What Finance Minister had Said in Press Conference after 4th GST Council Meeting