Finance Minister Jaitley said the GST will convert India into one economic market with one uniform tax rate and will enable seamless transfer of goods across the country.
The Goods and Services Tax (GST) Council finally fixed the rate slabs at 5%, 12%, 18% and 28%.
The GST Council meeting set the standard GST rate at 12% and 18%, 28% for white goods, and 28% plus cess for luxury items such as SUVs, etc.
Now that the GST rates have been fixed, here’s what has happened so far and what will happen next:
1. GST Council: After the Rajya Sabha passed the GST amendment bill, the GST Bill went to GST Council, comprising Finance Minister Arun Jaitley, MoS in charge of Revenue, Minister in-charge of Finance or Taxation, and other ministers, nominated by each state. The decisions were made by three-fourths majority of votes cast. Any disputes arising out of recommendations were rested by the council itself.
2. Details worked out: The council, which was formed by the President, made recommendations on taxes to be subsumed, exemptions, the rate of GST, special rate/rates for specified period, date from which GST to be levied on crude, high speed diesel, natural gas, aviation turbine fuel and petrol.
3. Winter Session: Now, the decisions taken by the GST Council will be taken up in Winter Session again to finally become a law. The GST is expected to get rolled out from April 1, 2017.