The Central Government through its Notification No. 10 /2017 – Central Tax dated 28th June, 2017 amended the existing Central Goods and Services Tax Rules, 2017. The Rules may be called Central Goods and Services Tax (Second Amendment) Rules, 2017 and shall come in force on 1st July, 2017. Through this notification, the government notified the final rate schedule under GST.
As per notification, the intangibles, for example, trademarks and goodwill will face a goods and services tax (GST) of 18%. The proposed tax is to be rolled out from July 1, 2017. According Rule 31 read with 51(k) of the Rules, anything not mentioned in the harmonised system nomenclature will face 18%. These are called residual entries in technical sense and the same principle is already in place for GST on services. Since intangibles such as trademarks and goodwill do not find a mention in the schedule they would fall in the category of residual entry, according to experts.
The apex body comprising the Centre and the States (The GST Council) set up to decide on GST issues has finalised a four-tier structure of 5% (2.5+2.5), 12% (6+6), 18% ( 9+9) and 28% (14+14) for GST (Central GST+ State GST), but the highest slab has been pegged in the law at 40%. All States will separately notify the rules and the rate schedule. There is also cess on Luxury and sin goods. The GST Council had approved the fitment of goods and services in these slabs at its meeting on May 19-20 in Srinagar.
The exact text and copy of the Amendment Notification can be downloaded from Here.