SRINAGAR: The all-powerful GST Council on Thursday finalised tax rates for services under the Goods and Service Tax (GST) regime, scheduled to kick-in from July 1.
The tax rates for services will be 5, 12, 18 and 28 percent - in line with those applying to goods. The council will meet again on June 3.
"The net effect of Goods and Services Tax will not be inflationary," Jaitley told reporters after a meeting of the GST Council in Srinagar, summer capital of Jammu and Kashmir state.
The council, comprising federal and state finance ministers, fixed rates for more than 1,200 items under the GST, amid demands by some states to keep essential items under the lower tax category.
Here's all you need to know:
Basic food items like cereals, eggs and meat will attract zero tax while processed food items will be charged between 12 and 28 percent. READ MORE
Jaitley said tax on gold and precious metals will be taken up at the next meeting of the Council on June 3
Separately, Revenue Secretary Hasmukh Adhia said e-commerce players like Flipkart, Snapdeal will have to deduct 1 per cent tax collected at source.
(With inputs from PTI, Reuters)