GST Council has taken a step ahead towards making GST a reality. They have lifted veil from the most awaited part of GST i.e. the tax rates. They have introduced the following rates:
- 0% – Food grains of high public consumption and which contributes to almost 50% of the inflation index;
- 5%-12%-18% – other Goods and services
- 28%- white goods like AC, washing machine and the likes
- 40%& 65%- aerated drinks , Pan Masala , Tobacco products , high cars and other luxury items
GST will promote compliance through e-compliance tools for managing the compliances and promote tax governance.