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
India's intelligence agency RAW (Research and Analysis Wing) has been embroiled in controversies
The case of Karnataka minister V Somanna slapping a woman was not yet settled and a new similar c
The US Supreme Court extended the government's order to stop the entry of migrants from the Mexic
During the visit of Prime Minister Narendra Modi to Uttarakhand, the disaster-affected villagers
Medical Counseling Committee (MCC) has added more seats in the NEET PG Stray Vacancy round and th
Incidents of shooting in America are not taking the name of stopping. Now there has been a shooti
Maharashtra: Shiv Sena MLA furious over the poor quality of food, slaps employee
Shiv Sena MLA Santosh Bangar slapped an employee who was preparing a mid-day meal in Maharashtra'
In the mega auction of IPL 2025, bids were first placed on 12 marquee players. It included seven
Twitter's new owner Elon Musk is claiming free speech on this platform. After which many people a
The Enforcement Directorate (ED) on Tuesday called Rahul Gandhi again for questioning in the Nati
