Announcement Date: November 3, 2016
A four-tier GST rate structure of 5%, 12%, 18% and 28% was decided by the GST Council. Essential items including food will be taxed at zero rate. The lowest rate of 5% would be for common use items. 12% and 18% would be the standard rates. The highest rate would apply to luxury and de-merit goods, which will also attract an additional cess. The collection from this cess as well as clean energy cess will be used for compensating states for any loss of revenue during the first five years of implementation of GST.