The new GST or Goods and Services Tax will range from 5 to 28 per cent in a four-bracket structure, Finance Minister Arun Jaitley said today.

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GST Rates Decided,4 Slabs Ranging From 5 To 28%
The newGST or Goodsand ServicesTax will range from5 to 28 per centin a four-bracketstructure,
Finance MinisterArunJaitleysaid today.
#DigitalErra Thought Corner
In a 2 day deliberationsinNewDelhibeginningtoday,Governmenthasfinaliseda4-tiertax structure
rangingfrom5% to 28% undera proposedGoodsandServicesTax (GST) withsome tinkeringof the
Centre’sproposal.
Earlier,a papersubmittedtothe GST Council highlightedthe painpointsinthe GST Bill.Itdemandedto
remove anomaliesacrossvarioussegmentsbefore the roll outof the Bill.
Here are the 10 latestdevelopmentsinthisbig story that has come out yesterday:
1. The rate and scope of the long-delayedtax hasbeenagreedupontodaybythe powerful GST
Council,whichconsistsof Mr Jaitleyandhiscounterpartsfromdifferentstates.
2. The four GST slabshave beensetat 5%, 12%, 18% and 28% for differentitemsorservices.

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3. The bracketsare steeperthanthe ratesof 6, 12, 18 and 26% earlierproposedbythe
government.
4. The peak rate of 28% will applytoluxurygoods.GST fortobacco productswill be fixedatthe
level of cessthatthese productsattract now.
5. The Finance Ministerpointedoutthatthe average islowerthanthe 18% demandedbythe
opposition,inparticularbythe Congress.
6. Service Tax will goupfrom 15% to 18 %,saidRevenue SecretaryHasmukhAdhia.
7. The tax rate agreedupontodaymustbe now be approvedbyparliament,whichmeetsfrom
November19for the wintersession.
8. Parliamenthastopass twobillsrelatedtoGST inthe wintersessiontobe ontrack to roll out of
the newindirecttax regime fromApril 1nextyear.
9. Fitmentorcategorizationof itemsforeachslabwill be done byofficialsandwillthenbe
approvedbythe GST council,Mr Jaitleysaid.
10. GST doesaway withindirectlevieschargedwhengoodscrossstate linesandunifiesIndiaintoa
single market.
GST will replace multiple layers of indirect taxation levied by variousstates.Itwill be critical to howSMEs
view their sourcing and trading needs.Arun Jaitley will require parliamentary approvalforbills later this
monththatwould setthe rate and scopeof theGST. Also,state assembliesmustbacksimilar bills forthe
tax to enter forceas planned nextApril1.