Market experts today welcomed the move by GST Council to keep tax rates at 80-90 percent of commodities under the four slab structure with essential dailyuse commodities being kept in lowest 5 percent bracket. Reacting to the development, Suresh Nair, Tax Partner, EY India said that the committee has done a very good job to keep tax rates on 81 percent items.
“The GST Council has done a commendable job to have the rate fitment for 81% of the commodities within and upto the 18% GST rate slab. This would definitely boost positive sentiments around GST. Outcome of tomorrow’s session will be critical for nailing down on the GST Go Live date, ” he said.
Seconding Nair’s view, Bipin Sapra said that the the broad structure of the GST has become clear, with only a few commodities being exempted. “The broad rate structure of GST has become clear with very few items being exempted, most of them being in the 18% category and a large chunk under the 28% category. Accordingly, while food stuff and unprocessed basic items like tea, coffee and edible oil may become cheaper, a large number of items which will be under 28% bracket would become costlier” company quoted him as saying.
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Earlier in the day, the council finalised tax rates on 80-90 percent of items under the four-slab structure with daily use commodities being kept in lowest bracket of 5 per cent, PTI report said. The Council onthe first day of the two-day meeting also also cleared rules for the Goods and Services Tax (GST)which is scheduled to start from from July 1.
As per the agency, most of the items have been kept in 5, 12, 18 or 28 per cent brackets.