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.