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GST rates to be decided this week

Updated on: Jul 13th, 2021

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3 min read

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

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Quick Summary

The GST fitment committee is meeting to slot services into four-tiered tax structure, aiming to minimize inflation and price changes. Services currently taxed under VAT and service tax to be placed in 18% slab, while those under 12.5% VAT may move to 12% GST. 9% tax services could shift to 12% slab, impacting costs marginally. Source: Mint India.

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