Centre Notifies CGST Rates For Goods Effective Sep 22

New Delhi- The Union Finance Ministry has notified Central GST (CGST) tax rates for goods, which will be effective from September 22.

States will now have to follow suit and notify the State GST (SGST) rates to be levied on goods and services beginning Monday.

Under GST, the revenues are shared equally between the Centre and the states.

Effective Monday, GST will be a two-tier structure, wherein the majority of goods and services will attract tax of 5 and 18 per cent.

A 40 per cent tax will be levied on ultra luxury items, while tobacco and related products will continue to be in the 28 per cent plus Cess category.

Currently, Goods and Services Tax (GST) is levied in 4 slabs of 5, 12, 18 and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.

With the reduction in rates on most goods, the onus is now on trade and industry to pass on the benefit of these tax rate changes to consumers and align compliance in a timely manner.

AMRG & Associates Senior Partner Rajat Mohan said by issuing clear schedules in the notification, the government has provided the much-needed clarity on applicable rates across a wide spectrum of goods.

“With this clarity in place, the ball is now in the industry's court. Businesses must promptly update their systems, revise pricing, and ensure smooth implementation of the new rates across supply chains,” Mohan said.

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