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GST Council Plans To Fix Tax Rate Under GST

5/4/2017
GST Council Plans To Fix Tax Rate Under GST

The GST Council will be aligning cautiously all goods and service rate to different slabs starting from 4th May’17 till 6th May’17. They are also looking forward to deciding the items that need to be brought under the unified tax net.

The committee comprises of officials both from centre and states and they believe that by the end of this meeting they might bring a conclusion on the tax rate alignment. A member of the council said that they will carry forward the meeting in such a manner that there is little work left to be done for approval at the end of the meeting.

The goal of this three-days meeting is to finalize the rate of goods and services into slabs that align with the present tax rate. This may include the reliefs given in the form of abatement presently, to make the transection revenue neutral.

Last week, the revenue secretary, Hasmukh Adhia said that the services may be taxed at two slabs (12% and 18%); the goods may be fixed at 5 slabs (15%, 12%, 18%, 28% and 28% + cess); and the rate for gem and jewellery outside the other slab could be between 2% and 5%.

In this meeting, the officials will look forward to adding more items that enjoy central excise duty and state VAT, under GST. So far, around 250 items and 90 items are exempted from central excise duty and VAT respectively.

Under GST, there will be common list of exemptions, in nature of everyday use essential items like food grain.

Later, the council is planning a two-day meeting at Srinagar starting from 18th May’17 to approve the tax slab and get ready for the tax reform to roll out on 1st July.