GST rate: Most services to be taxed at 18%, say govt sources

On the second day of the Goods and Services Tax (GST) Council meeting on Friday, government sources in Srinagar, where the meeting is being held, told Business Standard that most of the services would be taxed at the rate of 18 per cent under the GST regime.

Besides, there will be no new addition of services in the exempted list under GST. Maharashtra Finance Minister Sudhir Mungantiwar said services that were currently exempt would continue to be exempt under GST.

The next meeting of the GST Council will take place on June 3.

Kerala Finance Minister Thomas Isaac said, "GST Council agreed on 18% rate for telecom & financial services"

"There are four rates for services: 5 per cent, 12 per cent, 18 per cent, 28 per cent," he said while speaking to CNBCTV18.

Here is what GST Council agreed on

—Most exemptions for services to continue

—Service tax, luxury tax will be subsumed in GST

—GST rate for branded garments at 18 per cent

—Transportation to fall under 5 per cent bracket

—GST Council to mull beedi, cigarette, gold

—All hotel services with tariff over Rs 5,000 to be taxed at 28 per cent
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