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Start learning 50% faster. Sign in nowThe Central Government determines the rate of tax under the Central Goods and Services Tax (CGST) Act, but it does so based on the recommendations provided by the GST Council. The GST Council is a body that includes representatives from both the Central and State Governments, and it collaboratively decides on GST-related matters, including tax rates. So, the rate of tax is ultimately set by the Central Government, but it follows the guidance and recommendations of the GST Council to ensure a consensus among the states and the central authority.
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