GST Council approves two-rate tax slab effective September 22
▪ GST council, during its meeting, decided to revamped the tax structure into a primarily two-rate system, as proposed by the central government.
Rates
▪ 0% rate – Individual life and health insurance policies
▪ Two main slabs – 5% and 18%
▪ Special 40% rate – Tobacco, panmasala, luxury cars, yachts, private aircraft
▪ Effective from 22 September 2020
GST Council
▪ Article 279 A – President of India to constitute a joint forum of the centre and state called the GST council
▪ Chairperson – Union Finance Minister
▪ Member – The Union Minister of State, in-charge of Revenue of finance
▪ The minister in-charge of finance or taxation or any other minister nominated by each state
government
Function
▪ GST council is an apex committee to modify, reconcile or to make recommendations to the union and the state on GST.
