As per schedule, the GST (Goods and Services Tax) Council met once again on Friday–this time, in order to classify services, under the four broad tax slabs that has been fixed. On Thursday, 1,211 items were categorised, and today, the rates for the services industry, including transport, finance, insurance, hospitality, were confirmed.
"India has finalised four tax rates that will apply to services including telecoms, insurance, hotels and restaurants under a new sales tax which should be rolled out on July 1," Finance Minister Arun Jaitley said, addressing the press after the meeting.
After the announcement about the goods category that many basic foodstuffs, like wheat, rice, and milk, will be exempt from GST, as far as services are concerned, education and healthcare are among the sectors that will have a zero percent levy.
A 213-page document has been released by the CBEC, which serves as the definitive list of the rates decided for all the goods in circulation. Here is an overview of all the goods and services that a common man normally avails of, and how they will be charged July 1 onward:
2. In the five percent category:
2. In the 12 percent category:
4. In the 18 percent category
5. In the 28 percent category
1. In the zero-tax category
2. In the five percent slab
3. In the 12 percent slab
4. In the 18 percent slab
5. In the 28 percent club
The GST basically has four slabs five percent, 12 percent, 18 percent, and 28 percent. While the slabs have not been determined for all goods and services, it was confirmed by the finance minister in the press address after the meeting, that almost 81 percent of the goods will be under the first three brackets, lower than 18 percent. Only 19 percent of the items will be categorised under the 28 percent slab.
The slab for gold, which was also to be finalised today, is still pending, and hence, another meeting will be convened on June 3 to do the same.