A FICCI delegation which met the Empowered Committee of State Finance Ministers to discuss GST related matters recently, has suggested that certain “objective criteria be adopted by which goods can be covered in different rate categories” when the new levy comes into force. The delegation listed bullion and jewellery among the goods that are not charged at either standard or merit rates. 

In a release after the meeting, the industry body said that as per current indications and reports, while most goods will be categorised as being subject to merit rates (12%), standard rates (18%) and de-merit rates (40%), certain categories will be exempt and bullion and jewellery would be charged to 1% / 2%.

The organisation also recommended “lower” merit rates and “reasonable” standard rates to “check inflation, ensure compliance and check the tendency to evade taxes”.

FICCI also sought clarity on the current exemption schemes (area based exemptions, incentives under State policies) as the same is not clear under the defined transition provisions.

The delegation also put forth its suggestions on issues related to Implementation Schedule, Administration of the GST, Valuation principles, Mismatch of Input Tax Credit, etc.