GST rates fixed from 5% to 28%
New Delhi, Nov 03: The new GST or Goods and Services Tax will range from 5 to 28 per cent, Finance Minister Arun Jaitley said today. The GST panel fixes rates at 5%, 12%, 18% and 28%. Several items will be transferred to to 18% GST rate from 28% now, FM Arun Jaitley announced after the GST council meet.
The 5% GST rate will be applicable on items of mass consumption. Additional revenue from 28% slab will be used for 5% slab. Items taxed at 30-31 pc (excise plus VAT) will be taxed at 28 pc. Considering the inflation impact of having one standard rate, therell be 2 standard rates of 12% and 18%.
The GST on gold will be announced later.
The tax rate has to now be approved by parliament.