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News


No decision yet on GST rates as States oppose cess
Date: 20 Oct 2016
Source: Business Line
Reporter:
News ID: 6076
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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.

 
  

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