GST Council to take decision on rates in May
GST Council will take decision on rates in May after the council’s next meeting in Srinagar. The goods and services tax (GST) Council cleared rules on five aspects of the new indirect tax regime and tentatively approved four sets of norms. The Council’s next meeting will take place on May 18 and 19 in Srinagar where it will take up the four sets of norms and item-wise rates. This will leave six weeks for businesses to prepare for these changes before the planned roll-out on July 1. The Council will consider the fitment of items in the five slabs — zero, five per cent, 12 per cent, 18 per cent and 28 per cent. ‘Sin’ and luxury products such as tobacco, cigarettes, coal, luxury cars and aerated drinks will attract a cess over the peak rate of 28 per cent. The issue is if the fitment of rates and the four sets of rules are settled by May 19, businesses get one-and-a-half months to prepare for these changes. If these are delayed, they are left with even less time.