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GST Council to decide tax rates on services, gold, silver today
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Friday, May 19, 2017 | 12:12 IST
GST Council to decide tax rate on services, gold, silver today

The Goods and Services Tax Council meet being held in Srinagar will deliberate on Friday on the taxation of services and precious metals such as gold and silver.

The council led by Finance Minister Arun Jaitley is also likely to keep the single rate of service tax at 18 percent, except for transport which will get the benefit of abatement at present.

Also read: GST could bring down your monthly budget: Rice, dal, milk to become cheaper

Services of mass consumption and public goods such as education, healthcare and even pilgrimage related services are likely to be kept exempt from service tax.

Currently, service tax is levied at 15 percent.

The GST slab rates stand at 5%, 12%, 18% and 28%.

Also read: Day 1 of GST Council meet ends with tax rates fixed for 80-90% goods, services

With regard to services taxation, some states favour common services such as telecom, banking in the lower slab. Service tax rate is currently at 15%.

The service tax rate on gold and silver is likely to be kept at four per cent.

During the first day of the two-day meeting, the council categorised 80 to 90 per cent goods and services under the four tax slabs stipulated under the GST Act.

Essential commodities have been placed in the lowest tax bracket that is five per cent. Rates close to the existing incidence of excise duty coupled with VAT or service tax has been considered to be the rate under GST.

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