Updates from 17th April, 2017
The GST council’s fitment committee which includes tax officials from the Centre and the states will meet this week to find a formula for slotting services into the four-tiered tax structure of GST. The agenda of the committee is to keep inflation at a minimum and ensure that price change is zero or as small as possible.
It is expected that those services which are taxed under both VAT and service tax will be slotted in the 18% tax slab. Services on which VAT is calculated at 12.5% currently, can be taxed at 12% GST, and the same bracket could be used for transportation and logistics industries, too. Services currently paying 9% tax may be shifted to the 12% slab as well, which might affect their costs marginally.
As reported in Mint