The Goods & Services Tax (GST) Council has finalized a four-rate tax structure – 5, 12, 18 and 28 percent, Finance Minister Arun Jaitley today announced at a press conference.

The Finance Minister also explained the following the press conference:

1. 50% of the products in the consumer bracket as Zero Rated.

2. Items of mass consumption will be under 5% slab

3. White goods category, which is presently taxed at 30-31 percent level, will be under the 28 percent category.Car will be under 28% category, while luxury cars will be taxed more.
4.The GST panel has also approved cess on tobacco, luxury products and sin items. This cess will not be additional and won’t add to states or consumers burden.

5.Taxation on gold will be decided upon the revenue flexibility

6. Cost empowerment issue will be taken up tomorrow.

7. The council will decide on flexibility of the compensation pool after 5 years. Cess, on the other hand, will be reviewed every year.

8. Centre is required to pay Rs 50,000 crore as compensation in the first year of GST.