GST finalized; Govt keeps rates as low as 5 per cent

New Delhi: Finalizing the Goods and Services Tax (GST) Rates at as low as 5 per cent followed by 12 per cent, 18 per cent and 28 per cent, Finance Minister Arun Jaitley on Thursday said that government has announced a zero tax rate on food grains used by common people.

The announcement was made by Jaitley after a high-level meeting in New Delhi.

The long-awaited tax would transform Asia's third largest economy into a single market by harmonizing a slew of central and state levies.

Key points of GST rates:

• Five per cent GST rate on items of mass consumption.
• The additional revenue from 28 per cent slab will be used for the 5 per cent slab.
• Aerated drinks, pan masala, luxury cars, and tobacco products will be taxed higher than 28 per cent.
• There was no consensus yet on tax rate for gold.

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