India sets GST rates
- Nov 5, 2016 | Richard Asquith
India has set the following Goods and Services Tax (GST) rates ahead of the implementation of the new consumption tax in 2017:
- 0% (essentials)
- 5% (basic goods)
- 18% (principle rate)
- 28% (luxury goods)
The central CESS tax, of 2%, will remain on luxury goods.
The relatively large number or rates and broad bands may reduce some of the planned efficiencies around GST. However, the need to gain the acceptance of all the 27 Indian states has meant some compromises to ensure a 2017 launch were necessary.