You are here: Home » PTI Stories » National » News
Business Standard

GST: Centre, states put off decision on rate to next month

Press Trust of India  |  New Delhi 

A decision on GST rate was today put off to next month even as the Centre and states converged towards a consensus on levying a cess on luxury and sin goods in addition to the highest rate of tax in the new regime.

The cess would be used to compensate states for any loss of revenue they may suffer from implementation of Goods and Service Tax (GST) in first five years beginning April 1, 2017.



An informal consensus was reached at the end of the two-day meeting of the GST Council on a four-slab tax structure of 6, 12, 18 and 26 per cent. The lower tariff will be for essential items and the highest bracket for luxury and sin goods like tobacco, cigarettes and alcohol, but a decision was put off to the next meeting.

Finance Minister said the GST Council, that includes representatives of all states, will meet again on November 3-4 to decide on the tax rates.

The GST Council, which was originally to meet for three days, "converged towards a consensus on source of funding for state compensation," Jaitley said.

On tax structure, he said, "We cannot under-tax or over-tax to keep rate slabs minimum."

The attempt, he said, was to fit zero rated items while levying a 6 per cent tax on items that are currently charged 3-9 per cent tax.

"We will finalise the tax structure at the next meeting," he said, indicating there were two standard rates of 12 per cent and 18 per cent under discussion.

Once the GST rates are decided, the GST Council will meet again on November 9-10 to finalise the draft legislations, he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

GST: Centre, states put off decision on rate to next month

A decision on GST rate was today put off to next month even as the Centre and states converged towards a consensus on levying a cess on luxury and sin goods in addition to the highest rate of tax in the new regime. The cess would be used to compensate states for any loss of revenue they may suffer from implementation of Goods and Service Tax (GST) in first five years beginning April 1, 2017. An informal consensus was reached at the end of the two-day meeting of the GST Council on a four-slab tax structure of 6, 12, 18 and 26 per cent. The lower tariff will be for essential items and the highest bracket for luxury and sin goods like tobacco, cigarettes and alcohol, but a decision was put off to the next meeting. Finance Minister Arun Jaitley said the GST Council, that includes representatives of all states, will meet again on November 3-4 to decide on the tax rates. The GST Council, which was originally to meet for three days, "converged towards a consensus on source of funding for ... A decision on GST rate was today put off to next month even as the Centre and states converged towards a consensus on levying a cess on luxury and sin goods in addition to the highest rate of tax in the new regime.

The cess would be used to compensate states for any loss of revenue they may suffer from implementation of Goods and Service Tax (GST) in first five years beginning April 1, 2017.

An informal consensus was reached at the end of the two-day meeting of the GST Council on a four-slab tax structure of 6, 12, 18 and 26 per cent. The lower tariff will be for essential items and the highest bracket for luxury and sin goods like tobacco, cigarettes and alcohol, but a decision was put off to the next meeting.

Finance Minister said the GST Council, that includes representatives of all states, will meet again on November 3-4 to decide on the tax rates.

The GST Council, which was originally to meet for three days, "converged towards a consensus on source of funding for state compensation," Jaitley said.

On tax structure, he said, "We cannot under-tax or over-tax to keep rate slabs minimum."

The attempt, he said, was to fit zero rated items while levying a 6 per cent tax on items that are currently charged 3-9 per cent tax.

"We will finalise the tax structure at the next meeting," he said, indicating there were two standard rates of 12 per cent and 18 per cent under discussion.

Once the GST rates are decided, the GST Council will meet again on November 9-10 to finalise the draft legislations, he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

GST: Centre, states put off decision on rate to next month

A decision on GST rate was today put off to next month even as the Centre and states converged towards a consensus on levying a cess on luxury and sin goods in addition to the highest rate of tax in the new regime.

The cess would be used to compensate states for any loss of revenue they may suffer from implementation of Goods and Service Tax (GST) in first five years beginning April 1, 2017.

An informal consensus was reached at the end of the two-day meeting of the GST Council on a four-slab tax structure of 6, 12, 18 and 26 per cent. The lower tariff will be for essential items and the highest bracket for luxury and sin goods like tobacco, cigarettes and alcohol, but a decision was put off to the next meeting.

Finance Minister said the GST Council, that includes representatives of all states, will meet again on November 3-4 to decide on the tax rates.

The GST Council, which was originally to meet for three days, "converged towards a consensus on source of funding for state compensation," Jaitley said.

On tax structure, he said, "We cannot under-tax or over-tax to keep rate slabs minimum."

The attempt, he said, was to fit zero rated items while levying a 6 per cent tax on items that are currently charged 3-9 per cent tax.

"We will finalise the tax structure at the next meeting," he said, indicating there were two standard rates of 12 per cent and 18 per cent under discussion.

Once the GST rates are decided, the GST Council will meet again on November 9-10 to finalise the draft legislations, he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard