How much maximum percentage tax can be applied on any goods under GST?
The GST council has kept 5 slab rates under GST which are 0%, 5%, 12%, 18% and 28%.
Different products are kept in different slab rates depending on various factors.
While items of daily use and importance are kept in lower tax brackets, most of the luxury items are kept in 28% tax bracket.
So one might think that 28% is the highest rate that can be applied. But this is wrong, because on many products there will be levied a compensation cess which will be in addition to the 28% tax.
Besides, while importing goods in India, importer will be required to pay Basic Customs Duty and IGST because BCD has not been subsumed under GST.
Thus, imports will include BCD as well as IGST. And this, in my opinion will be the maximum tax that will be applied under GST.
Hope this helps.