By TIOL News Service

SRINAGAR, MAY 18, 2017: ON day one of the two-day GST Council meeting here, the high-powered federal body approved seven rules which are already in the public domain. The Rules would be notified just before the final implementation of the GST.

Though the Council Members are also expected to finalise the list of goods and services to be exempted but it has assumed greater attention for finalising the tax rates on as many as 1211 items. As per the Revenue Secretary, Dr Hashmukh Adhia, the Council has given its nod to tax rates for all items except six. About 14% of total items fall under 5% tax slab; 17% items have come under 12% slab; 43% goods have come under 18% slab and 19% items fall under 28% tax slab.

Regarding exemptions, Dr Adhia said that milk and cereals will fall in the exempted list. If needed, the Council would meet one more time to wrap up the issue of tax rates by consensus. Some of the essential items like tea, edible oil and sugar would be attracting 5% tax rate.

One item on which consensus continues to be elusive is gold. Kerala FM has favoured 5% tax rate as against 4% by many states.