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56th GST Council Meeting Today’s Outcome Live News Updates: Finance Minister Nirmala Sitharaman Wednesday announced that the GST Council had decided to move to a two-tier rate structure. Effective September 22, the GST structure will have two slabs of taxes: 5 per cent and 18 per cent. Sitharaman said that life and health insurance policy premiums will no longer attract any GST. Sin goods such as tobacco and tobacco-related products such as cigarettes have been slapped with a 40 per cent levy.
Compensation cess to continue: Sitharaman said that the compensation cess will continue till the government repays its loans and the levy is limited to tobacco and tobacco-related products. The cess compensates states for any revenue loss due to the implementation of GST. The GST rate revamp will result in around Rs 48,000 crore of “revenue implication” for the government, said Revenue Secretary Arvind Shrivastava.
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56th GST meeting: Bihar Deputy Chief Minister Samrat Choudhary said that the decision was arrived at after a consensus was built amid states for rate rationalisation. The decision was taken after a marathon meeting of the GST Council that lasted for 10.5 hours, in which the Centre and states thrashed out key tax proposals.
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