Home / Knowledge / News / Textiles / GST Council discusses 4-slab rate structure
GST Council discusses 4-slab rate structure
19
Oct '16
GST Council discussed various possibilities for the rates of goods and services tax (GST) along with a four-slab structure of 6, 12, 18 and 26 per cent on the first day of the ongoing three-day GST meeting. The Council also reached consensus on payment of compensation to states that is likely to be sourced from varying cesses to be levied on demerit goods.

Arun Jaitley, the Union finance minister, said at the media briefing that at least 5 options on rate structure have been presented to the Council. He added that the rate structure needs to be decided in such a way that it refrains from causing revenue losses to the country as well as inflationary pressures in the economy.

The Centre has put forward a proposition to the GST Council of 2 standard rates of 12 per cent and 18 per cent for various taxable goods. If approved by the Council, a majority of the services will be taxed at 18 per cent, while the goods with abatement are likely to be taxed at the rate of 12 per cent.

The proposal also includes a threshold rate of 6 per cent, a rate of 4 per cent for precious metals and a 26 per cent rate on luxury items and tobacco products. The Centre said that a cess can be levied on sin goods in order to gather fund for the compensation that needs to be paid to the states for the losses they will incur due to the transition to GST.

According to the estimates of the Centre, a total compensation of around Rs 50,000 crore will need to be paid to the states in the first year. Close to Rs 26,000 crore will be sourced from the clean environment cess, while the rest will be collected from cess on demerit goods like luxury cars, pan masala, tobacoo products and aerated drinks.

Speaking about the cess on demerit goods, revenue secretary Hasmukh Adhia said that as per the Centre's proposal to the Council, it will vary and will be levied in addition to the 26 per cent GST rate.

The Centre is keen on rolling out GST by April 1, 2017. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Jens Mahnke from Pexels

Textiles | On 22nd Oct 2018

India levies anti-dumping duty on flax yarn from China

The ministry of finance, Government of India, has imposed definitive...

US polyester yarn makers allege dumping from China, India

Textiles | On 22nd Oct 2018

US polyester yarn makers allege dumping from China, India

Two major US synthetic yarn producers—Unifi Manufacturing, Inc...

Courtesy: Donear

Textiles | On 22nd Oct 2018

Aspiring middle class shaping menswear fabric trend

The key trends shaping menswear fabric include a new middle class and ...

Interviews View All

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harssh Chheda,

Harssh Chheda

Mumbai-based Corporate Collars provides bespoke tailoring services for...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search