FM Sitharaman said that the compensation cess will continue till the government repays its loans and the levy is limited to tobacco and tobacco-related products. (PTI Photo)56th GST Council Meeting Today’s Outcome Live News Updates: Finance Minister Nirmala Sitharaman Wednesday announced that the GST Council had decided to move to a two-tier rate structure. Effective September 22, the GST structure will have two slabs of taxes: 5 per cent and 18 per cent. This would result in around Rs 48,000 crore of “revenue implication” for the government, said Revenue Secretary Arvind Shrivastava.
Compensation cess to continue: Sitharaman said that the compensation cess will continue till the government repays its loans and the levy is limited to tobacco and tobacco-related products. The cess compensates states for any revenue loss due to the implementation of GST.
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56th GST meeting: Bihar Deputy Chief Minister Samrat Choudhary said that the decision was arrived at after a consensus was built amid states for rate rationalisation. The decision was taken after a marathon meeting of the GST Council that lasted for 10.5 hours, in which the Centre and states thrashed out key tax proposals.
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