Finance Minister Arun Jaitley said the GST rate on gold will be later decided by the GST Council.
The GST Council has finanlised a four-tier rate structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent, Finance Minister Arun Jaitley, who heads the panel, said on Thursday.
Mr Jaitley said that under the rate structure, food items comprising about 50 per cent of the consumer inflation index would not attract any tax.
The finance minister said that there would be two standard rates - the rates at which bulk of the goods would be taxed - of 12 per cent and 18 per cent.
Items of mass consumption would come under the 5 per cent GST rate. Additional revenue from the 28 per cent slab will be used for compensating the loss from the 5 per cent slab, Mr Jaitley said.
The minister said that under the current tax rate, most white goods attract 30-31 per cent tax rate. Most white goods are likely to be taxed at 28 per cent.
The GST panel also approved cess on some products like tobacco products, aerated drinks, pan masala, which would be effectively taxed higher than 28 per cent.
Mr Jaitley said that cess on sin goods will be added to the pool to compensate states for any revenue loss, if any.
The minister said that the GST rate on gold will be later decided by the GST Council.
The government plans to implement GST from April 1 next year. The one-nation, one-tax will transform the country into a single market, thus boosting revenues through better compliance while making life simpler for businesses that now pay a host of central and state levies.
Mr Jaitley also said the individual items which will fall under different tax categories will be decided later.
Mr Jaitley said that under the rate structure, food items comprising about 50 per cent of the consumer inflation index would not attract any tax.
The finance minister said that there would be two standard rates - the rates at which bulk of the goods would be taxed - of 12 per cent and 18 per cent.
Items of mass consumption would come under the 5 per cent GST rate. Additional revenue from the 28 per cent slab will be used for compensating the loss from the 5 per cent slab, Mr Jaitley said.
The minister said that under the current tax rate, most white goods attract 30-31 per cent tax rate. Most white goods are likely to be taxed at 28 per cent.
The GST panel also approved cess on some products like tobacco products, aerated drinks, pan masala, which would be effectively taxed higher than 28 per cent.
Mr Jaitley said that cess on sin goods will be added to the pool to compensate states for any revenue loss, if any.
The minister said that the GST rate on gold will be later decided by the GST Council.
The government plans to implement GST from April 1 next year. The one-nation, one-tax will transform the country into a single market, thus boosting revenues through better compliance while making life simpler for businesses that now pay a host of central and state levies.
Mr Jaitley also said the individual items which will fall under different tax categories will be decided later.
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