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
Arvind Kejriwal: Kejriwal will not resign from the post of Chief Minister, said big thing about BJP
Delhi Chief Minister Arvind Kejriwal asked why he had not tendered his resignation while in jail.
One Plus's best battery phone launch, know what is the price
OnePlus 10R 5G On Amazon: Back to back new smartphones are being launched in the market. OnePlus
Whenever Ganesh Chaturthi comes, celebrations start not only in the houses of common people but a
The Election Commission of India has replied to Aam Aadmi Party (AAP) national convenor Arvind Ke
Indian women's cricket team coach Amol Majumdar wished Pakistan the best of luck ahead of their W
India's first national assessment regulatory framework will bring uniformity in assessment being
The Uttar Pradesh (UP) government has filed an affidavit in the Supreme Court, in which the UP go
New York: Teen arrested for hate crime, besides elderly Sikh tourist, two other Sikhs were attacked
A 19-year-old teenager has been arrested for his alleged involvement in the attack on three Sikh
A full year has passed since the Russia-Ukraine war. But it continues. Today again Russia has car
In the 31st match of IPL 2024, Kolkata Knight Riders faced Rajasthan Royals on Tuesday. This exci
