The Goods and Services Tax (GST) Council finalised a multiple-slab rate structure on November 3, 2016, includinc the cess, for the new indirect tax. The GST will be levied at multiple rates ranging from 0% to 28%. The quantum of
cess on each of these will depend on the current incidence of tax. The approved slabs vary slightly from the proposal the Centre had moved at the Council's last meeting.
•Ultra luxuries, demerit and sin goods, will attract a cess for a period of five years on top of the 28% GST. The highest slab of 28% will include white goods and all those items on which the current rate of incidence varies from 30-31%.
•On nearly half of the consumer inflation basket, including food grains, the GST will be at 0%.
•The lowest slab of 5% will be for items of common consumption.
•There would be two standard rates of 12% and 18%, which would fall on the bulk of the goods and services. This includes fast-moving consumer goods.
The principle for determining the rate on each item will be to lei, and collect the GST at the rate slab closest to the current tax incidence on it. The Council will review annually the tax revenue raised from the cess that will fund compensations from the Centre to States for losses arising out of the transition to the GS1
