After, understanding what GST is, let us look at the various tax slabs proposed to be implemented after GST, and also the various products that will come under these.
The following table will simplify this for you. There is also a reason section which will explain the rationale behind that tax slab. Read on to know more, also give in your inputs in the comment section below, and let us know your opinion on the different slabs.
50% of basic commodities included in CPI
Mass consumption goods
If some tobacco products are currently charged at 32% the center will apply 4% cess additionally after applying the 28%.
- Collection of cesses along with clean energy cess will be pooled to compensate states for any loss of revenue during 5 years of implementation of GST.
- The states and center are working on a similar structure for services. With most services being taxed at 18% and essential services will be taxed at 12% and 5%.
- Petroleum and Alcohol exempt from GST ambit as they drive maximum revenue for states.
- The 28% tax slab may be peaked to 40%.
Also read: WINNER AND LOSERS OF GST