A PTI report said that at the Council meeting, in which finance ministers of nearly all states were present, "80-90 percent" of goods and services have been fitted under the four tax slabs - 5, 12, 18 and 28 percent.
The GST Council on Thursday approved seven rules of the goods and services tax (GST) and the remaining two rules relating to transition and return are being vetted by the legal committee, Union Finance Minister Arun Jaitley said. Under this scenario, a uniform levy of 5 per cent GST on all textiles and clothing products would ensure smooth migration of entire textile value chain from the present tax structure to GST tax structure with full compliance, creating win-win strategy for all the stakeholders and would bring substantial revenue to the exchequer when compared to the existing revenue.
Coal will attract the GST of 5 per cent as against the current tax incidence of 11.69 per cent. The discussions were around the lines of evolving a broad consensus on the placement of the items under various tax slabs as to avoid "surprises". The key GST Council meeting will see the states pitching for their preferred rates on select items. This is supported by North East states.
"The GST Council has done a commendable job to have the rate fitment for 81% of the commodities within and upto the 18% GST rate slab".
According to sources, Jaitley asked the states during the meeting to keep exemptions to the bare minimum.
The Goods and Services (GST) Council on Thursday agreed on the fitment of nearly all commodities in the various tax slabs under the new indirect regime to be rolled out on July 1.
Yogi Adityanath-led Uttar Pradesh sought zero levy on "puja samagri" instead of the proposed 18 per cent. What is the principle or idea of tax being imposed on it at 1 per cent rate?
The GST will be a national sales tax that will be levied on consumption of goods or use of services. They said that the entire cotton textile value chain is now enjoying the zero per cent Central Excise benefit under optional Cenvat from 2004.
GST, among other things, will eliminate tariff barriers between states and economically unify India. "The GST law will boost the country's GDP growth by 2 per cent".
Since then, Germany, Italy, the UK, South Korea, Japan, Canada and Australia have been among the over a dozen nations which have implemented the GST.
"For large enterprises, GST professionals have been conducting extensive impact analysis and identifying all the pain points for GST implementation". Saudi Arabia plans to do it in 2018. In the overall basket there would be a reduction, but we are banking on the hope that because of a more efficient system, evasion would be checked and tax buoyancy would go up. Coal, which is now taxed at 11.7%, will attract a GST rate of 5%.