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TMI BlogRates for Goods & Services TaxX X X X Extracts X X X X X X X X Extracts X X X X ..... Rates for Goods & Services Tax - By: - Monarch Bhatt - Goods and Services Tax - GST - Dated:- 5-11-2016 - - On 03 rd day of November, 2016 GST council began it s two days discussion wherein, centre had proposed for four tier rate structure. The proposed rate structure by the centre was 6%, 12%, 18% and 26%, which was finalised with slight modification and the finalised rates are 5%, 12%, 18% an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 28%. My quick views on GST rates are as follows. In my view GST rates, adopted by the council for recommendation are very reasonable as it is subsuming all the current indirect tax levies including excise duty, VAT, Service Tax, and entry tax. I consider it as five tier rate structure and not four tier rate structure as one of the important rate under GST regime is Zero Rated . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, rate structure comes to 0%, 5%, 12%, 18% and 28%. Essential goods like food grains, life-saving drugs will be chargeable to Zero rate . Zero rated tax is much welcome move under GST, as it will enable the assessee to avail Input Tax Credit charged on the purchase of goods or while procuring the services. Assesse will be eligible for the refund of such credit availed by them. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Under the current indirect tax system, majority of similar kind of products are exempted and due to exemption assessee is not able to claim the credit available with them. In-turn it becomes cost for the assessee. Hence, Zero rated tax will beneficial for the assessee. Precious metals like gold bars, silver bars, platinum, and jewelleries made from precious metals with or without st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ones may attract lower rate than currently announced lowest rate of 5%. However, jewellery made up with higher caret stone or over the specified grams may get covered under the category of luxury goods to attract 28% GST. However, it will lead to grey market and therefore such recommendation will be avoided by the council. The common usage goods will attract lowest tax rate of 5%. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The higher rate of 28% will apply to luxury goods like cars. Additional cesses will also be imposed over and above 28% slab rate on Luxury cars, tobacco products, and aerated drinks. Therefore, such luxury products will be chargeable to much higher rate than recommended rate by the GST council. Services likely to attract GST rate of 18% instead of current rate of 15% (14% servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax +0.5% Swachh Bharat Cess +0.5% Krishi Kalyan Cess). Goods and / or services attracting taxes under each slab are yet to be listed and then it will be approved by the council. The categorization will be based on the Harmonized System of Nomenclature (HSN). Even currently, excise classification is based on HSN. In winter session of parliament starting from 19 th November 2016, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parliament is likely to come up with CGST bill and IGST bill incorporating the rates, which will enable implementation of GST from April 2017. - Reply By Ganeshan Kalyani as = The schedules for charging vat is what is needed to know the impact of tax change. now only the guess work is going on. initial 2 years will be try and error for all. Dated: 6-11-2016 - Scholarly articles for knowl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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