ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Panel fixes GST rate structure, FM Jaitley says

States getting lower revenue than this would be compensated by the Centre.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Panel fixes GST rate structure, FM Jaitley says
At the last meeting, the Council agreed on keeping base year for calculating the revenue of a state at 2015-16. Photo: IANS

Key Highlights

The panel has proposed zero tax rate for several items

12%, 18% will be standard rates

For mass consumption items, GST rate will be 5%

Tobacco will be taxed at 65% rate

 A 4-tier GST tax structure of 5, 12, 18 and 28%, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess, was decided by the all- powerful GST Council on Thursday.

With a view to keeping inflation under check, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.

The lowest rate of 5% would be for common use items while there would be two standard rates of 12 and 18% under the Goods and Services Tax (GST) regime targetted to be rolled out from April 1, 2017.

Announcing the decisions arrived at the first day of the two-day GST Council meeting, Finance Minister Arun Jaitley said highest tax slab will be applicable to items which are currently taxed at 30-31% (excise duty plus VAT).

Luxury cars, tobacco and aerated drinks would also be levied with an additional cess on top of the highest tax rate.

The collection from this cess as well as that of the clean energy cess would create a revenue pool which would be used for compensating states for any loss of revenue during the first five years of implementation of GST.

The cess, he said, would be lapsable after five years. Jaitley said about Rs 50,000 crore would be needed to compensate states for loss of revenue from rollout of GST, which is to subsume a host of central and state taxes like excise duty, service tax and VAT, in the first year.

The 4-tier tax structure agreed to has slight modification to the 6, 12, 18 and 26% slab that were under discussion at the GST Council last month.

The structure to agreed is a compromise to accommodate demand for highest tax rate of 40% by states like Kerala. While the Centre proposed to levy a 4% GST on gold, a final decision was put off, Jaitley said. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Goods and Service Tax (GST) BillGST CouncilArun JaitleyGST rateEconomy
Written By: PTI
Updated: Thu, Nov 03, 2016
07:50 pm
New Delhi, PTI
RELATED NEWS
Nifty rallies towards 9,100-mark; Sensex up over 100 points Nifty rallies towards 9,100-mark; Sensex up over 100 points
Cabinet approves GST supplementary and compensation bills Cabinet approves GST supplementary and compensation bills
E-commerce companies to pay up to 1% TCS under GST E-commerce companies to pay up to 1% TCS under GST
Quasi-judicial body likely to curb profiteering post GST Quasi-judicial body likely to curb profiteering post GST
GST Council clears law for compensating states for loss of revenue, says Jaitely GST Council clears law for compensating states for loss of revenue, says Jaitely

LATEST NEWS

IPL 2023 Final Match Live Streaming: When and where to watch Chennai Super Kings Vs Gujarat Titans match

Parliament Inauguration: Sarv Dharma prayer offered at new Parliament House, know which religious leaders participated

GSLV-F12/NVS-01: Countdown for launch of 'Indian GPS' satellite begins

Cabinet secretary-led panel to interview five candidates for RBI deputy governor's post on June 1

PM Modi to flag off North East's first Vande Bharat Express in Guwahati tomorrow

New Parliament Building Inauguration: RJD compares shape with coffin

Mann ki Baat: Yuva Sangam great initiative to promote people-to-people connect, says PM Modi

Joe Biden, GOP reach tentative deal to raise debt ceiling, avoid calamitous US default

UP govt to set up body for state capital region

F-16s to Ukraine would be 'unacceptable escalation', warns Russia

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV