08 November 2016 India's Goods and Service Tax Council finalizes four-tier rate structure for proposed GST regime While a detailed list on the application of different rates to various goods and services is pending, India's Finance Minister announced the four-tier rate structure on November 3, for the proposed Goods and Services Tax (GST) regime. According to the announcement, a 5% rate will be imposed on items that are consumed by the public. The standard 12% and 18% GST rates will be applicable to a majority of goods and services. Essential items such as food, grains, etc., which represent approximately half of the consumer price index basket, will be taxed at a zero rate. Most services will fall under the 18% class. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-1893 |
