
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
No date has been decided yet for the constable recruitment examination in Uttar Pradesh Police, b
Now enjoy Akshay Kumar's film Ram Setu sitting at home, which will be released on OTT on this day
Ram Setu OTT Release: Hindi cinema's most awaited film 'Ram Setu' could not show many wonders to
Twitter's privacy breached, more than 200 million email addresses hacked: report reveals
There has been a big disclosure regarding the privacy of Twitter users. Hackers stole the email a
British Prime Minister Boris Johnson is on a two-day visit to India. The British PM reached Ahmed
Canada's shock to Punjabis: PM Trudeau imposed a ban on buying property; Can't buy a house now
The Justin Trudeau government of Canada has given a big blow to the Punjabis in the new year. Alo
The entire North India including Delhi-NCR is facing the brunt of severe cold these days. Cold wa
USA Independence Day 2023: America's Independence Day is celebrated every year on 4th July. This
Sidhu Moosewala's parents met Home Minister Amit Shah, demanding a high-level probe into the murder
Father and mother of late Punjabi singer Sidhu Moosewala met Union Home Minister Amit Shah in Cha
Jaswinder Bhalla, a well-known actor and comedian of the Punjabi industry, passed away today on 2
Xiaomi 13 Pro smartphone launch revealed, price leaked, know features
Xiaomi 13 Pro Launch Date: Xiaomi has recently introduced its Xiaomi 12 series, but now it is kno