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GST from April 2011; Tax Rates fixed at 12%, 16% & 20%
July, 22nd 2010

Breaking News! Finance minister Pranab Mukherjee has proposed a three-rate structure for the Goods and Services Tax (GST) under which essential items, services and goods tax rates will be fixed at 12%, 16% & 20% respectively.

The new structure of GST is planned to be implemented from April 1, 2011. According to the new indirect tax regime, all the central and state taxes including excise, VAT and service tax will be enrolled into GST.

Mukherjee said that the total revenue from GST will be shared equally between the centre and states. The 20% taxes on goods, 16% on services and essential items 12% will be equally divided between the centre and the state.

Again, 15% tax will be implemented on the trade and industry as per the dual rate structure for goods, Mukherjee said at a meeting on Wednesday.

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