GST Reforms: Rollout Of New Tax Rates Likely Around September 22-Profit Exclusive

GST Reforms: The Goods and Services tax Council, headed by finance minister Nirmala Sitharaman, will rollout the new GST tax slabs by around Sept 22 to boost India's festive demand, government sources told NDTV Profit. The implementation of the new GST tax rates will likely be around Sept 22, expected to coincide with the Navratri celebrations.

The all-powerful GST Council will meet on Sept 3–4 in the national capital to deliberate on the simplified two-structure GST tax slab of 5% and 18% proposed by the Centre. According to sources, the notifications will begin rolling out nearly five to seven days after the GST Council’s decision.

The council, comprising finance ministers of all states and UTs besides the Centre, will deliberate on the recommendations by the group of ministers on rate rationalisation, compensation cess and health and life insurance. The Group of Ministers (GoM) comprising state ministers met earlier this week and, in principle, agreed to the Centre's proposal for a two-slab GST.

According to the reform proposed by the Centre to the GoMs, Goods and Services Tax (GST) should be a two-rate structure of 5 and 18%, classifying goods and services as 'merit' and 'standard'. A special rate of 40 per cent will be levied on select few items like ultra-luxury cars and sin goods. Currently, GST is a four-tier structure of 5, 12, 18 and 28%.