India Government Proposes Two-Rate GST Structure, Official Says

India’s federal government proposes a two-rate structure for its Goods and Services Tax with most falling under 5% and 18% rates, an official said, asking not to be identified citing rules.

• The government proposes 40% GST rate for 5-7 goods, including tobacco
• Government’s proposals have been sent to a state ministers’ panel looking into rate changes
  • State ministers panel to meet “soon”
• The GST council, which has the final say on any changes in rates, will meet Sept.-Oct. to discuss the the proposed rate rationalization
• Rate overhaul to boost consumption, gross domestic product
• NOTE: Modi Slams ‘Economic Selfishness’ in Defiance ...