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
Chief Minister Yogi Adityanath announced several ambitious schemes during the discussion on the b
The air quality in the national capital Delhi and the entire NCR has once again reached the sever
External Affairs Minister S Jaishankar on Wednesday said it is in the mutual interest of both Ind
Go Air Fault: Two Go Air planes malfunctioned on the same day, and DGCA started an investigation
The cases of disturbances during the airlines in the country are not taking the name of stopping.
In recent times, US President Donald Trump has termed India a dead economy. After this comment by
The election results for all 227 wards of the Brihanmumbai Municipal Corporation (BMC) in Mumbai
British Prime Minister Boris Johnson was on a visit to Delhi on Friday. He met Prime Minister Nar
NIPER JEE Admit Card 2022: Admit card issued for NIPER JEE exam, download here
National Institute of Pharmaceutical Education and Research (NIPER), Hyderabad has released the a
Indian women's cricket team vice-captain Smriti Mandhana will be aiming to set a major record bef
Similar to the riots in North-East Delhi two years ago, a conspiracy was hatched in Jahangirpuri.
