During the first year of introduction of the new indirect tax regime, the central government will keep the tax on essential items at 6 %.
2nd Rate : 10%
The tax on other items will be at the standard rate of 10 percent.
3rd Rate : 8%
For services, the levy would be 8 percent.
The Economics Times also published the report of FM's offer and a brief quote is being published here.
After the finance minister agreed to compensate the states fully for any possible loss of revenue from shift to the new tax, brightening the prospects for its roll out from April 1, 2011.