At the first day of the two-day GST council meet, Finance Minister Arun Jaitley proclaimed at a press conference that the basic structure of the goods and Services tax system has been finalised. Jaitley announced that the new system would comprise of a four-tier tax structure. According to the Finance Minister, the rates have been finalised by the GST council at  5 percent, 12 percent, 18 percent and 28 percent.

According to earlier reports, the centre had decided to fix the tax rate at 6, 12, 18 and 26 percent. However, as the GST Council meet neared, the Centre and states seemed to toughen their respective positions with respect to the issues they disagree on. The current rates seem to have come about after immense deliberation.