The GST Council on Tuesday finalised a 4-tier tax structure of 5, 12, 18 and 28 per cent, with lower rates for essential items and the highest for luxury and de-merits goods that would also attract an additional cess. Anncouncing the decision arrived at the first day of the two-day GST Council meeting, Finance Minister Arun Jaitley told reporters that to keep inflation under check, essential items including food, which presently constitute roughly half of the consumer inflation basket, will be taxed at zero rate.
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