At what rate shall goods and services would be taxable under GST ?
While it has been suggested that the rate of GST should be uniform all across India, the same seems more unlikely looking into the local compulsions of various states. Even otherwise, a single rate of GST has not been proposed and thus, there shall be different rates which have been suggested for GST. Four slab rates have been proposed:
|Nature of Goods / Services||Rate of Tax (CGST + SGST / IGST)|
|Bullion, Jewellery etc||2%-4%|
|Essential Goods / Services||0% (Exempted/Nil rated)|
|Demerit Goods||26 – 40%|
Proposed slab rates of 8, 10, 18 and 26 per cent be tweaked to 10, 12, 16 and 25 per cent. It is proposed that 50% of the essential goods and services would be exempted from GST. Already 300 items in the Centre and nearly 80 items in the states enjoy exemption.