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

Lok Sabha Elections 2024: Sonia Gandhi in Rae Bareli, today she will be seen on the same stage with Priyanka, Rahul, and Akhilesh Yadav.

Sonia Gandhi is in Rae Bareli. Today she will address the rally to be held ne

T20 World Cup: If Virat Kohli is there then it is possible, the King's record against PAK is unmatched, and bowlers will tremble on 9th June; know these unmatched figures

The countdown to the T20 World Cup 2024 has started. This tournament is to start on June 1 under

Rice Export: India raises issues related to agriculture sector and rice export with UAE

India raised the problems of the agriculture sector and rice exporters prominently in its meeting

Increase in electricity rate in Sri Lanka by 264%: Regulator gave permission, said - change is necessary to make up for the deficit

Tariffs will be increased by 264% for people who consume less electricity in Sri Lanka. Whereas f

Election Commission Takes Strict Stance on EVM Tampering: Warns of Re-polls in Bengal Over Irregularities; Action to Be Taken Against Culprits

The Election Commission of India has adopted a strict stance regarding apprehensions of tampering

Mamta Banerjee meets PM Modi, and talks on many issues including GST arrears

West Bengal Chief Minister Mamata Banerjee met Prime Minister Narendra Modi at his Delhi residenc

Haldwani Violence: Words of a terrible day written on roads, walls, and vehicles... even after a week the situation is like this, pictures

Eight days ago... this was the same area. No one knew that after some time something unimaginable

Joshimath Sinking: Satellite pictures of ISRO revealed, Joshimath sunk 5.4 cm in 12 days

The National Remote Sensing Center of the Indian Space Research Organization has released satelli

Biparjoy Updates: The effect of Cyclone Biparjoy is visible, alert was issued from Maharashtra to Gujarat; many trains canceled

Cyclone Biparjoy is still two days away from making landfall in India, but its effects have alrea

Twitter Down: When Twitter was down, users said - the effect of layoffs started

A lot has been happening in the Twitter office for the past two weeks. As soon as Elon Musk becam

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