The GST Council’s third round of deliberations ended here on Wednesday without a decision on the rates structure after most States objected to a proposal to levy an additional cess on demerit goods.
Triggers objections
The proposal from the Centre that triggered objections was for the imposition of a cess over and above the Goods and Services Tax on ultra luxury and demerit goods such as big cars, aerated beverages and tobacco products.
Finance Minister Arun Jaitley told a media conference that the GST Council — comprising Ministers from all the States and headed by him — will meet next on November 3-4 to decide on the GST rates structure.
The Centre had on Tuesday proposed the cess as a means to finance the compensation it will have to pay States.