Key Decisions from Day One of the GST Council Meeting in Srinagar
The first day of the GST Council meeting in Srinagar concluded with significant progress on tax rate fitment. Discussions focused on categorizing goods and services into five distinct tax slabs for the upcoming GST implementation. A key outcome revealed that a vast majority of items, approximately 81%, would fall under GST rates below 18%, aligning with industry expectations to ensure economic stability.
The Goods and Services Tax (GST) Council concluded the initial day of its two-day session in Srinagar, following extensive discussions on rate rationalization. The primary objective of this meeting was to assign various goods and services to one of five predefined tax slabs: 0%, 5%, 12%, 18%, and 28%, thereby finalizing tax rates for the upcoming GST implementation. Revenue Secretary Mr. Hasmukh Adhia announced after the day's proceedings that approximately 81% of goods would be subject to GST rates below 18%. Conversely, only about 19% of items would face taxation above the 18% threshold. This aligns with expectations from industry observers, who largely anticipated that most goods and services would fall within the 18% tax bracket to avoid economic disruption.