According to media reports, the rate of the lower slab of GST may increase. While the rate of its four slabs can be reduced to three.
Apart from this, the rates of GST applicable on high consumption and essential goods will be rationalised. At present, there are 480 such items which attract 18% GST. This segment accounts for 70 per cent of the total GST collection.
The government can increase the tax burden on the already lightheaded common man before the impact of inflation. The Modi government is preparing for a major reshuffle in the rates of GST (goods and services tax). This can be done under the plan to increase tax revenue in the next two years.
According to media reports, the rate of the lower slab of GST may increase. While the rate of its four slabs can be reduced to three. Apart from this, the rates of GST applicable on high consumption and essential goods will be rationalised. At present, there are 480 such items which attract 18% GST. This segment accounts for 70 per cent of the total GST collection.
A new slab will be brought in place of 12-18 percent slab !
At present, there are four slabs of GST – 5 per cent, 12 per cent, 18 per cent and 28 per cent. It has been said in media reports that the rate of the lower slab of GST can be increased to 6-7 percent. Whereas the slabs of 12 percent and 18 percent can be removed and a new slab of 15 percent can be brought in its place. There will be no change in the 28 per cent slab.
The rate of the lower slab may increase
, this reshuffle can be stamped in the next meeting of the GST Council. It is expected that a meeting of the council can be held in the third week of May.
The reduction of the lower slab of GST from 5 percent to 6-7 percent and the slab of 12 percent to 15 percent will have a direct impact on the pocket of the common man. Most of the food items and medicines are included in this slab. However, bringing down the 18 per cent slab to 15 per cent is likely to bring down prices of some goods.
The committee of finance ministers of the states can submit its report on the reshuffle in rates to the GST Council by the end of April. It will also include suggestions for different steps to increase revenue. This committee is headed by Karnataka Chief Minister Basavaraj Bommai.
Let us tell you that in March 2022, the GST collection reached its record level. During this, GST recovery of Rs 1,42,095 crore has been done, which is the highest ever. Maharashtra has been at number one in GST collection where Rs 20,305 crore came from GST. Gujarat is at number two with Rs 9,158 crore and Karnataka is at number three (Rs 8,750 crore). It is followed by Tamil Nadu (8,023 crores), Haryana (6,654 crores) and Uttar Pradesh (Rs 6,620 crores).
