In a major breakthrough on Thursday, GST Council has finalised the tax rates at between 5%, 12%, 18% & 28% paving way for the implementation of the new pan-India tax regime, revealed Finance Minister Arun Jaitley. Sin tax on tobacco products, soft drinks and other white goods was fixed at over 28 per cent. In the GST excise duty, state VAT (along with countervailing taxes on imports), service tax, octroi, entry tax and sundry cesses levied by the Centre and states will be subsumed. States had said that by keeping the existing clean energy cess and a cess on tobacco, bulk of the funds for compensating states for any revenue loss in the GST regime could be found while other cesses are subsumed in GST.
Here are the top 5 quotes of Finance Minister Arun Jaitley
# Council To decide on flexibility of compensation pool after 5 years, Cess will be reviewed on a year to year basis
# Cess won’t be additional charges but existing ones, decision on GST rate on gold will be taken later.
# Cess on sin goods and energy cess will be added to compensation pool. Need To Pay Rs 50,000 crore as compensation In 1st year of GST
# Present tax rate for most white goods at 30-31%, most white goods to be now taxed at 28% but with riders
# Zero tax rate for several items constituting 50% Of CPI Basket
GST stands for “Goods and Services Tax”, and is proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian Central and State governments.