Multiple tax slabs and cess to complicate GST

Satya Poddar of EY said taxation will get more complicated with different tax slabs

While the Indian industry pitched for a gradual reduction in number of goods and services tax (GST) slabs from four to ‘one or two’, tax consultants argued that imposition of a cess will complicate the proposed uniform indirect tax structure.
 

The GST Council on Thursday arrived at a consensus on a four-tiered rate structure — 5 per cent, 12 per cent, 18 per cent and 28 per cent — and a cess on demerit items, including tobacco, pan masala, luxury cars and aerated drinks to compensate states for a possible revenue loss.
 

"GST rates' structure can be an absolute limit