Indian Finance Minister Arun Jaitley said the GST rate slabs have been finalized between 5% and 28%.The four-rate structure at 5%, 12%, 18% and 28% was finalized during the GST Council meeting. The standard GST rate has been fixed at 12% and 18%.
The GST for white goods has been kept at 28% GST and for luxury goods, it will be 28% plus Cess.
Jaitley said the GST, which has been a long pending issue and is expected to propel growth and boost manufacturing in India, progress was as per schedule.
"There was a broad consensus on four rate slabs," Haseeb Drabu, state finance minister for Jammu & Kashmir told reporters after attending the GST Council's meeting.
Jaitley said the 5% duty was on items of mass consumption. "There will be standard rate of 12 and 18% on other items."
"Tobacco will fetch 28% sin tax, excluding cess. Aerated drinks will also fetch tax at the same rate. Most white goods to be taxed at 28% but with riders," he said.
The prices of certain consumer durables like televisions, air conditioners, fridges and washing machines may however become cheaper with decrease in taxes.
The government plans to roll out the new indirect tax regime from April 1, 2017.