Finmin Arun Jaitly Chairing three days Meeting of GST Council started tuesday on 18th october 2016 had proposed following at the end of 1st day of Meeting.
OUTCOMES OF 1ST DAY OF GST COUNCIL MEETING
A) PROPOSED RATE OF GST
Mr. Arun Jaitely Presented different five rate structure of GST as follow
Standard rate – 12% and 18%
Essential goods – 6%
Luxury goods – 26%
Gold – 4%
To add this Mr. Arun Jaitely said the rate should be revenue -neutral so that there is no need to burden consumers with additional tax.
B) COMPENSATION TO STATES
Moreover GST council meeting also reached at a consensus to compensate the states in case of a revenue loss after entering in new tax regime. On compensation of states 2015-16 will be taken as base year for calculating revenue assuming a secular-or long term growth rate of 14%. This compensation would continue for five years.
Now this meeting is expected to take other more crucial decision that will have a bearing on the common man.