6 Tier Rate Structure decided by the GST Council, No Cess
GST Council which met today for finalising the tax rates of GST has come up with the conclusion of 6 tire rate structure despite the 4 tier structure proposed by the centre government. The GST Council has come to the following conclusion:
|3||12% & 18%||Standard Rate|
|4||28%||FMCG & Consumer Durable|
|5||40% plus additional duty||Aerated Drinks and SUVs|
Earlier the Center had proposed four rate structures with 26% being the maximum. Cesses will not continue under GST. Government has planned to increase the GST rate in place of levying luxury cess and clean energy cess whose input tax credit was not available. Today’s GST Council Meet has agreed upon 6 rate structure of GST.
Also Center Reaffirmed that the GST would surely roll out from 01.04.2017. Looking at the pace of the Government and deadlines set for the GST Network the nation should prepare itself for the biggest indirect Tax reform since independence.
Refer : http://www.taxvibe.com/2016/11/03/key-takeaway-gst-council-meeting-03-11-2016/