GST Rate Structure
A 4-tier rate structure of 5, 12, 18 and 28 per cent was decided by GST Council on 3 November 2016. The lowest rate of 5 % for the common use items, two standard rates of 12 and 18 % which would fall on the bulk of the goods and services, and 28 % for luxury and de-merit goods will be levied under GST to be rolled out from 1 April 2017. On demerit goods such as aerated drinks, luxury cars, tobacco and pan masala, a cess will be levied by the centre over and above the 28% slab. GST rate on gold is yet to be finalized.
Multi-tiered GST System
| Tax Rate % | Indicative items |
|---|---|
| 0 | 50 % of consumer price basket items |
| 5 | Mass Consumption items |
| 12 | Processed foods |
| 18 | Soaps, toothpaste, oil, refrigerators, smart phones |
| 28 | White goods, cars, pan masala, tobacco, aerated drinks |