The GST Council has fitted the goods and services in tax brackets of 5, 12, 18 and 28 per cent.
The GST Council meeting, which ends today, will soon announce the tax rates for gold, footwear and biscuits.
Jaitley said the rates on the remaining items will be decided in the Council's meeting on Friday.
The all-powerful GST Council today finalised four tax rates of 5, 12, 18 and 28 per cent for services including telecom, insurance, hotels and restaurants under the biggest tax reform since the Independence.
At present, telecom consumers are charged 15 per cent in form of tax and cess over their phone bills.
Food grains will cost less from July 1 when the nation-wide Goods and Service Tax (GST) is rolled out as the GST Council on Thursday made a decision to exempt the daily-use commodities from the levy. Under the current system, a product is taxed multiple times with different state levies and taxes.
"Telecom and financial services will be taxed at a standard rate of 18 per cent", he said.
Daily consumption items such as milk, fruit and vegetables, jaggery or gur, foodgrain and cereals will cost less as they have been exempted from tax.
Tax rate fixed at 5 per cent against existing 6 for economy class air travel.
"The rates are as per the expectations of the industry and nearly all segments of the industry have benefited by way of a reduced overall tax burden in varying degree", said SIAM President Vinod Dasari.
Aerated drinks and cars will be in 28% bracket. "There are six categories [of items] that need more discussion", said Union Finance Minister Arun Jaitley, according to The Hindu. One of the key decisions taken is that education and healthcare services will not be taxed under GST.
Seven per cent of the items fall under the exempt list while 14 per cent have been put in the lowest tax bracket of 5 per cent. Jaitely said. "We all seen since yesterday the environment and I am sure the next two days also we will have a very successful meeting".
Telecom and financial services will attract GST of 18 per cent while race clubs, betting and cinema halls will be taxed 28 per cent. This category of vehicles will attract 15 per cent cess over the peak rate of 28 per cent making it a total of 43 per cent.
The rate for capital goods, as well as industrial and intermediate items have been set at 18 per cent. Industry sources said the average combined tax rate is in the range of 18% to 22%.
The 5% rate will be levied on transport services.
Hotels and lodges with tariffs less Rs 1000 will be taxed at 5%. In 30 of these territories, the tax on mobile phones will almost double to 12 percent leading to an increase in the prices.