GST on cars, two-wheelers may be cut

Going by the Centre's formula, both the 28% tax bracket and the cess, which will outlive its utility by November, will be done away with.

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GOING BY THE Centre's formula, both the 28% tax bracket and the cess, which will outlive its utility by November, will be done away with. The 12% rate, which covers barely 5% of the items, will also go.

A senior official said on Saturday that the Union government's approach would not be to put its proposal on the table and ask the states to accept them. "It is a proposal that is being put up for consideration of the (GST) Council. Prior to that, a group of ministers (would review it). We would not want to preempt any of its (the council's) powers, nor would we like to lock everything in, and say you (states) sign it," the official said. The weighted average GST rate may fall further from the current level of around 11%. Though there could be a short-term dip in tax buoyancy, this would be 'manageable', the official said.