Question

Currently, what is the highest percentage slab for the new tax system called Goods and Service Tax (Goods and Services Tax (GST))?

1. 18%
2. 25%
3. 28%
4. 32%

Answer 1

Correct Answer - Option 3 : 28%

The correct answer is 28%.

• Currently, 28% is the highest percentage slab for the new tax system called Goods and Service Tax.
• Nearly all goods and services under the purview of GST have been divided into four GST rates – 5%, 12%, 18%, and 28%. 
• Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services.
• However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.

• 101^st Amendment Act is about Goods and Service Tax.
• The government proposes to introduce GST with effect from 1st July 2017.