Mumbai: The all-powerful Goods and Services Tax or GST Council on day two will discuss rates on services on Friday. The Council is chaired by Finance Minister Arun Jaitley and has all state finance ministers as its members. The fourteenth meet of the Council has been termed as historic as it is being held in Jammu and Kashmir's capital Srinagar.
Presently, the services are charged at 15 per cent that includes both central and state levies at different stages. Players in services sector fear that services will become costlier if government decides to put them under 18 per cent tax bracket. Most of the players demand a 12 per cent tax net for services, which will make services slightly cheaper.
GST Council will meet one more time if tax for all items are not decided by Friday," Finance Minister Arun Jaitley said. At today's meeting, rates on precious metal gold, and rates for services are to be taken up for discussion and final conclusion.
It may be noted that some states have sought a 4 per cent tax on gold and services though the rate does not form part of the four-tier tax structure under the GST which has been fixed at 5 per cent, 12 per cent, 18 per cent and 28 per cent respectively.
All states along with the Centre yesterday unanimously approved rates for 1,211 goods barring such items as services, gold, biscuits, footwear and packaged cereals. Tax rates for these items will be taken up and decided today.
The Council has exempted 7 per cent of total goods from GST. It has brought 14 per cent of good under 5 per cent tax bracket. Further, 17 per cent of goods will be put under 12 per cent tax net. And, 43 per cent under 18 per cent tax net which is apart from 19 per cent goods that come under 28 per cent bracket.