
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
‘My Hyderabadi brother, stay there only…’ Deputy CM Devendra Fadnavis attacked AIMIM chief Owaisi.
Maharashtra Deputy CM Devendra Fadnavis has once again targeted All India Majlis-e-Ittehadul Musl
Aam Aadmi Party MLAs created a ruckus during the address of Lieutenant Governor VK Saxena in the
Ranbir Kapoor is in the news for his upcoming film Animal. His first look from the film has alrea
Sri Lankan all-rounder Chamika Karunaratne suffered a serious injury in the Lanka Premier League
Due to the incidents of mob firing in America, the demand for a ban on openly carrying guns there
Mumbai Narcos Smuggling: Every day in the country some agency is catching a large consignment of
The BCCI has so far earned over Rs 46000 crore through the TV and digital rights of IPL, making i
Life was badly affected amid outrage against the new law on hit and run. Transporters went on a n
Prime Minister Narendra Modi today inaugurated the 'World Food India 2023' program at Bharat Mand
What happened during the dispute between Virat Kohli and Anil Kumble, Virender Sehwag revealed
Virender Sehwag, the former explosive opener of the Indian team, has made a big disclosure regard