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

Elon Musk followed PM Modi on Twitter, users are giving this reaction

Twitter chief and billionaire Elon Musk has started following Prime Minister Narendra Modi on Twi

Navratri 2022 Day 1: Today is the first day of Sharadiya Navratri, crowds of devotees gathered in temples across the country

Navratri 2022 Day 1: Today (Monday) is the first day of Sharadiya Navratri. Navratri started on 2

Shubman Gill wreaked havoc with the bat in England, breaking Rahul Dravid's 23-year-old record.

Indian Test captain Shubman Gill made a historic record on English soil on 13 July. He broke the

SIP Investment for Kids: Start Early, Build a Crore-Rupee Fund for Your Child With Small Monthly Investments

When it comes to securing a child's future, most parents focus on increasing their income before

RBI ₹10, ₹20 Plastic Notes: When Will Polymer Currency Hit the Market? Governor Gives Big Update

The Reserve Bank of India (RBI) is moving ahead with plans to introduce polymer (plastic) banknot

Adani Group: Adani Group will employ 40 thousand people in Rajasthan, Gautam Adani said at Invest Rajasthan Summit

Adani Group has invested over Rs 35,000 crore in several industrial sectors in Rajasthan. Continu

Paralympics: The pair of Sheetal Devi and Rakesh Kumar won bronze in mixed team archery, India got the 13th medal

The para archery pair of Sheetal Devi and Rakesh Kumar won the bronze medal by defeating the pair

Uddhav Thackeray: Uddhav Thackeray is surrounded in a disproportionate assets case, hearing in court on December 8

Former Maharashtra Chief Minister Uddhav Thackeray's trouble is increasing. The Bombay High Court

Another 'Sonam' unfaithful... Father's murder and 100 CCTV footage, of child pretending to sleep exposed the truth

In Alwar, Rajasthan, another case similar to Raja Raghuvanshi and Sonam has come to light. But in

Mock Drill Alert: Did you also hear a beeping sound on your phone? Find out what to do in such a situation.

Today—May 2nd—between 12:00 PM and 6:00 PM, if you suddenly receive an emergency mess

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