The GST Council in its fourth meeting held on Nov. 3, 2016 has finalized the GST rates. The finalised rates are 5, 12, 18 and 28 percent. The sin items such as tobacco, aerated drinks, pan masala, etc., will be taxed at more than 28 percent. The rate of GST on Gold has not been decided yet. Items constituting half of the consumer price index (CPI) basket (including food grain) will be exempted from GST.
The additional cess would be levied in first five years after GST implementation to compensate States for any loss of revenue. The Corpus of Rs.50,000 Crore would be needed to pay compensation to States in the first year.