GST- Tax rates, a welcome step

gst

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:

  1. 0% – Food grains of high public consumption and which contributes to almost 50% of the inflation index;
  2. 5%-12%-18% – other Goods and services
  3. 28%- white goods like AC, washing machine and the likes
  4. 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.

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