Four-tier rate structure, cess for luxury goods: Takeaways from GST meet

Centre, states agree on compensation formula; cess on cards for ultra-luxury items

 

FM Arun Jaitley with Revenue Secretary Hasmukh Adhia

The GST Council on Tuesday discussed a four-tier rate structure suggested by the Centre and agreed on compensation to loss-incurring states for the first five years of the new tax regime. The Opposition might voice differences with the proposal.

The council was apprised of the proposal of these slabs — 6, 12, 18 and 26 per cent, with cess on the highest tariff for ultra luxury and demerit items. The proposal also includes four-per cent rate on