GST Council finalises peak rate at 28%

50% of consumer price index basket exempted; minimum rate now at 5%; cess to continue

The Goods and Services Tax (GST) Council on Thursday decided upon a 4-slab tax structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent, with lower rates for essential items and the highest for luxury and de-merits goods, many of which would also attract an additional cess. A proposal by some states, including Kerala, to have special GST rates on luxury and sin goods was not accepted.

On Friday, the Council will take up the prickly issue of administrative control over assessees. The Centre has proposed “cross-empowerment” whereby both the Centre and states will