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Two Rate Plan Fixed for Services under new GST Regime

Two Rate Plan Fixed for Services under new GST Regime

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.

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