Updates and details for GST Tax Rate in India: Final GST Rate Out:
In this article, you can get details for GST Tax and GST Tax Rate in India. GST will be applicable in India from 1st April 2017. To get more details, just scroll down and read the full article.
What is GST?
GST(Goods and Service Tax) is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
GST Tax in India
The GST Council has fixed the tax rate, moving a step ahead in developing the dream to make India a single market from 1 April 2017.
Hot Article: GST Applicability and Registration Details
Finance minister Mr.Arun Jaitley said at a press conference that GST Council has fixed the four-tier structure of 5 percent, 12 percent, 18 percent and 28 percent. The Centre had earlier proposed the tiers at 6, 12, 18 and 26 percent, the peak rate being for FMCG and consumer durables.
- The four bands of tax rates have been fixed at 5 percent, 12 percent, 18 percent and 28 percent. This apart, another category of tax between 40 percent and 65 percent will be imposed on luxury goods like high-end cars, pan masala, aerated drinks and tobacco products.
- Food grains will be zero-rated to insulate people from inflationary pressures.
- Most white goods, like washing machines, air conditioners, refrigerators, shampoo, shaving stuff and soap, will be taxed at 28 percent (with riders). The current levy varies between nil tax to 30-31 percent. The rider has been set as there are several items which are used by the lower middle class.
- A decision has also been taken to levy a cess in order to raise funds to compensate states for the revenue losses they will incur. The government estimates Rs 50,000 crore will be needed in the first year for compensation. “If we have to raise this by way of tax, we will need Rs 1,72,000 crore,” Finance Minister Arun Jaitley said.
- Demerit goods or sin goods such as luxury cars, pan masala, aerated drinks, and tobacco and tobacco products, will invite a tax of 28 percent plus the cess. The overall incidence with cess, thus, could vary between 40 per cent and 65 per cent.
- There has been no consensus yet on tax rate for gold.
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