The GST Council’s fitment committee (which is responsible for fixing the rates of products and services under GST) has tentatively decided two slab rates for services – 12% and 16%. The slab rates for the goods would remain unchanged at 5 per cent, 12 per cent, 18 per cent, 28 per cent and 28 per cent plus cess.
Earlier the committee was considering to fix a flat rate of 18% for services however, it was decided that it may lead to losses for businesses. Services which are presently taxed at 15% will incur a tax of 16% while price sensitive services being used by masses will be taxed at 12%. The fitment committee also concurred to have a distinct tax rate of 2-4% for gems and jewellery.