"The Council may meet again if final rates are not decided tomorrow (Friday)". For air-conditioned restaurants, the tax rate will be 18 percent.
Sarika Goel, Tax Partner, EY India, said, "For small cars, the rate is pretty much closer to what the tax incidence is today".
The GST council has recently fixed a tax rate of 18% on mobile and financial services, while exempting education and healthcare from GST levy.
The country is establishing a national Goods and Services Tax (GST) with the rates for different sectors and products announced on Friday. Rates are 18 per cent for household goods such as soaps and 28 per cent for durables such as cars.
The tax rates will be 5 percent, 12 percent, 18 percent and 28 percent - in line with those applying to goods.
The release of the tax rates in the public domain has happened 40 days before July 1, the day the GST regime kicks in. Under GST regime, all non-AC restaurants will be taxed at 12% after all the local levies are subsumed under one tax. Finally, Milk and curd are exempted from tax rates.
Items such as cream, branded paneer, skimmed milk powder, fish fillet, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract 5% tax.
However, for those travelling business class, tickets will become dearer as the tax will go up from 9 per cent to 12 per cent.
Work contracts like white washing will be liable for a 12 per cent GST.
"I expected two or three slabs". This will need to be corrected. "Exemptions and issues related to reverse charge mechanism have not been finalised, and looks doubtful that it will be done in a day", said Taxmann.com Senior Consultant V.S Datey.
Participating in the debate, state Finance Minister SB Behera said the GST Council had accepted at least seven proposals of the Odisha government.
As of May 4, eight states including Rajasthan, Telangana, Bihar, Madhya Pradesh, Haryana and Jharkhand have passed a state goods and services tax Act in their state assemblies. All hopes and promises of a lower tax have been dashed, he said.
Transport services will be taxed at 5%. Touted to be India's biggest tax reform since independence, GST will subsume all other indirect taxes on supply of Goods and services, right from manufacturer to consumer.
It seems that 81 percent of the items are under 18 percent GST while only the luxury items are at a high tax of 28 percent. In addition to these taxes, there is also state taxes, octroi and infrastructure cess that is levied.
Jaitley said the key feature of today's rate decision has been that "tax rate under GST will not go up for any of the commodities".
There is also a risk of overzealous tax inspectors becoming more intrusive as the GST has an "anti-profiteering" provision to ensure companies pass on the benefit of input tax credits to consumers.style="text-align: center;"