GST Council meet : Will the rate be fixed at 18% after all?

GST , one of the most important reform in taxation in India , is all set to be implemented with the details being finalised by the GST council after accommodating views of the state as represented by the state finance ministers.

GST council meet is an important meeting and it is expected that 18 per cent rate may be finalised and with that happening the service tax may go up as it is currently taxed at 15 per cent. Also for the first time it may so happen that the service tax will be shared by the centre and the state governments which so far was collected by the centre only.

Taking cues from the previous GST council meets , it was proposed that a four-tiered GST system be implemented with various rates at 6,12,18 and 26 per cent. There were suggestions on levying cess on sin goods and gold.

In today's GST council meet that will follow on till tomorrow it is expected that the revenue neutral rate will be finalised. In case the GST rate is finalised at 18 per cent or below 20 per cent the logistics companies along with auto stocks could see some positive momentum.