Today on 18th October, 2016 in its 1st day discussion GST Council has proposed 4 slab rates viz. 6%, 12%, 18% and 26%. Food items are proposed to be exempt from tax and other necessary items would be taxed at lower rates whereas luxury and demerit goods will be charged at highest rates. Additionally, a cess will be charged on ultra-luxury products, tobacco products and environmentally harmful products.
The council reached the consensus about the compensation to states which will be limited to taxes subsumed into GST. Base year for the calculation of the revenue shall be 2015-16 and a growth rate of 14% would be taken for calculating revenue of each state for the first five years of the implementation of GST.
Now to see what outcomes we receive in next 2 days.
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