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|
|18||Soaps, toothpaste, oil, refrigerators, smart phones|
|28||White goods, cars, pan masala, tobacco, aerated drinks|