The central government on Monday refuted media reports that claimed that the GST (Goods and Services Tax) Council is preparing to bring goods falling in the five percent tax slab to eight percent. News agency ANI has given this information by quoting government sources.
Sources said that the council has no such proposal. This news is only based on speculations and there is no truth in it.
GST Council meeting to be held next month
The meeting of the GST Council is to be held next month. Reports had claimed that in this meeting, the council may consider the proposal to bring the items falling in the five percent tax slab to the three and eight percent slab.
The report, which came out on Sunday, had said that according to the proposal, some items of mass consumption will be kept in the tax slab of three percent and the remaining items will be taxed in the eight percent slab.
At present, there are four tax slabs (5, 12, 18, and 28 percent) in GST. Apart from this, gold and gold ornaments attract a three percent tax. The council consists of the Union Finance Minister and the Finance Ministers of the states.
Result of one percent increase in five percent slab
If there is an increase of one percent in the five percent slab, it will result in annual additional revenue of about Rs 50,000 crore. This slab mainly consists of packaged food items. Under GST, the tax rate on essential goods is either kept at the lowest or they are exempted from tax. Whereas, the highest tax (28 percent) is levied on luxury items and this amount is given to the states to compensate for the loss due to the implementation of GST.
Compensation grant system to end in June
The system of GST compensation grants is set to end in June this year. In such a situation, it is necessary that the states become self-reliant and do not depend on the Center to bridge the revenue gap in GST collection. The council had last year constituted a committee for state ministers. It was headed by Karnataka Chief Minister Basavaraj Bommai. This committee was entrusted with the task of suggesting ways to increase revenue by rationalizing tax rates and removing anomalies in the tax structure.
While implementing the GST on July 1, 2017, the central government had agreed to give GST compensation grants to the states by June 2022.
Also Read: Big fall Rs 5.88 lakh crore raised from corporate bonds, the lowest level in the last six years
Today's Weather Delhi NCR Rain News: There is news of rain in many areas of Delhi since this morn
Geeta Me Jihad: Uproar over Shivraj Patil's 'Jihad in Gita' statement, VHP targets Congress
There has been an uproar over Congress leader Shivraj Patil's statement that there is 'Jihad in G
'Banrakas- Vinod is watching how under the guise of normalization, the youth were turned from off
The written examination for direct recruitment to 60,244 posts of constable civil police in UP Po
Petrol Diesel Price: Oil companies have released the prices of petrol and diesel for today. Today
New Delhi. Delhi CM Arvind Kejriwal will not appear before the Enforcement Directorate even today
40 schools, including many big schools in the capital Delhi, have received bomb threats. DPS RK P
The T20 World Cup 2026 is scheduled to begin on February 7, 2026, but before the start of the tou
The Indian team entered the final of the ODI World Cup after 12 years. The Rohit Sharma-led India
Pooja Bhatt: Congress leader Rahul Gandhi's 'Bharat Jodo Yatra' has become a topic of discussion
