Updated By: LatestGKGS Desk
FM Arun Jaitley to present five rate structures in GST council
Finance Minister Arun Jaitley presenting 5 different rate structures in GST Council, suggestions from Arvind Subhramanian, economic chief advisor
Finance Minister to be presenting five different rate structures in GST Council.
Arvind Subramanian, the economic chief advisor of India, has suggested four different rate structures which are standard rate at 18%, lower rate at 12%, precious metal rate at 2-6% and a demerit rate at 40%.
The rates will be such that does not causes consumer inflation and at the same time yields return for revenue of the central and the state government.
Food items to be exempted, essential items to be charged less tax as compared to luxury items
The food items will be exempted from the tax, 50% items of common usage will be exempted and lower rate will be levied on essential items and higher rates will be levied on luxury goods.
The GST Council will sort out the details of compensation of states due to any loss on Goods and Service tax, for this a compensation fund will be created to help the states recover for any loss of revenue.
