GST Council: No preparations are being made to reduce the five percent tax slab to eight percent, the Center rejected the claim


Posted on 19th Apr 2022 03:34 pm by rohit kumar

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.

Did you know?Explore Trending and Topic pages for more stories like this.

 

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

1 Like 0 Dislike
Previous news Next news
Other news

Repo Rate: There may be an increase in repo rates again in June, RBI governor gave these big indications

To control the ever-increasing inflation in the country, in the first week of May, the Reserve Ba

Revenge for insulting Prophet Mohammad... plan to attack India's top leaders, IS terrorist caught in Russia

Russia has arrested a suicide bomber associated with the terrorist organization Islamic State (IS

Union Minister Dharmendra Pradhan said - Australia's two top universities will soon open campus in Gujarat

India and Australia have taken steps towards a great partnership in the field of education. Two t

Hardik-Natasha: Natasha again fueled the rumors of divorce with Hardik Pandya, said- 'God is with you'

The rumors of the divorce of actress and model Natasha Stankovic and cricketer Hardik Pandya have

Google Layoffs: People fired from Google started a new venture; Seven people together formed a new company

A man who worked as a senior manager at Google was recently fired as part of the company's cost-c

Yamuna Floods: Flood risk in these areas of Delhi! Water rising rapidly from Haryana; Alert for 48 to 72 hours

The water level in the Yamuna river is rising rapidly. In view of which the risk of floods in Del

Yudh Abhyas 2022: Indo-US military exercise near Barahoti, why is this area special?

These days a joint military exercise is going on between India and America in Auli, Uttarakhand.

Ayodhya Ram Mandir: Lord Shri Ram seated in the sanctum sanctorum, the first picture of the idol surfaced

The formal rituals of Ramlalla's life consecration started on Thursday with the worship of Ganesh

Katrina Kaif: Katrina announced her pregnancy, shared a picture with husband Vicky, wrote – the beginning of a new chapter

Bollywood actress Katrina Kaif announced her pregnancy on Tuesday. The actress shared a photo fro

Saif Ali Khan: Saif suffered serious injuries near his neck and spine, the house helper was also stabbed by the thieves

Bollywood actor Saif Ali Khan was attacked with a knife during an attempted burglary at his Bandr

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash