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GST: Tax rates for most goods to fall
April 24, 2017
- The Goods and Services Tax (GST) Council’s resolve to minimize rate shocks will result in the reduction in the nominal tax rates for a vast majority of goods. Half of the items in the Consumer Price Index (CPI) basket will be exempt from GST and another tenth will be taxed at the lowest rate of 5%. The balance CPI goods would come under either of the two standard rates of 12% or 18%, rather than the highest rate of 28%.
- “Under the GST regime, the tax would apply on the transaction value of the product. Therefore, the correct excise incidence would be the actual excise duty paid expressed as a percentage of the final price to the customer,” said R Muralidharan, senior director, Deloitte Haskins & Sells.
