Highlights of GST Council Meeting
- THE GST Council has decided the GST rate structure in its meeting held on 3.11.2016. These rates are 5%, 12%, 18% and 28%.
- Zero rate will apply to several items, which constitute 50% of Consumer Price Index basket including food grains used by common people.
- 5% rate will apply to items of mass consumption particularly used by common people.
- Considering the inflationary impact of one standard rate, there will be two standard rates of 12% and 18%.
- Rate of 28% will apply to several items particularly white goods & others now attracting effective tax rate of 30-31%.
- Even though these goods attract 12.5% Excise Duty and 14.5% VAT, net effective rate comes to 30-31% taking into account the cascading effect.
- However, some items used by large no. of people particularly lower middle class now attracting 30-31% effective tax will be in lower tax slab.