NEW DELHI: Tax officers of both Central and state Governments today discussed various aspects of draft GST laws, the tax rate on various goods and services and exempted ones under the indirect tax regime, which is likely to kick in from April next year.
Revenue Secretary Hasmukh Adhia chaired the meeting to finalise the draft GST laws and the meeting would continue tomorrow.
Officials said the report of the officers committee will be taken up by the GST Council, which is headed by Union Finance Minister and has state ministers as members, at its next meeting on November 25.
At its last meeting, the Council agreed on a four-slab structure – 5, 12, 18 and 28 per cent — along with a cess on luxury and ‘sin’ goods, including tobacco.
Under the structure, the clean energy cess and that of luxury items and demerit goods will be utilised to create a Rs 50,000 crore fund every year which will be utilised to compensate the states for first five years of GST rollout.
With a view to safeguarding the interest of poor and keeping inflation in check, it has been decided that half the items in the CPI basket like foodgrains will not be taxed at all.
However, the committee of state and central officers will have to together work out the final list of items for each tax bracket. (AGENCIES)
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