Finance Minister Etala Rajender, announcing the breakthrough in the talks about Goods and Services Tax (GST) with Union Finance Minister Arun Jaitley, said that those goods attracting tax between nine per cent and 15 per cent would be now taxed at 12 per cent in Telangana.
Talking to presspersons in Delhi after the first day meeting, he said the goods attracting five per cent Value Added Tax (VAT) would remain unchanged under GST too.
States had taken a unanimous decision to keep the goods and services used most by the poor at five per cent while the other slabs would be 12 per, 18 per cent and 26 per cent.
Since goods and services currently under 40 per cent-45 per cent would be attracting 28 per cent under the GST and the States were likely to lose revenue, it was decided to impose a cess. Similarly, cess would be imposed on tobacco products over and above the GST rates.
He said Friday’s meeting would be discussing whether States could have the power of collecting sales and service tax of less than 1.5 crore and anything above to bring it under the Centre. Special Chief Secretary (finance) Ajay Mishra, and Commercial Taxes Commissioner Anil Kumar were present.
