
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
After the Diwali festival, Prime Minister Narendra Modi will address the Chintan Shivir of Home M
India film festival of Melbourne 2023 Nominations: Indian Film Festival of Melbourne released a n
The conflict between the Bangladesh Cricket Board and the ICC continues ahead of the T20 World Cu
The Ministry of Civil Aviation has told a parliamentary committee that in the coming two years, m
A stampede-like situation arose in the Prayagraj Maha Kumbh Mela on Wednesday morning after lakhs
Coach told the mantra for Kuldeep's return: Tennis ball-local match became a game changer
Kuldeep Yadav caught the South African batsmen in the net of his spin at the Feroz Shah Stadium i
Between April and June, many blockbuster Hollywood films are going to appear on OTT platforms. Ma
Indian cricket team's wicketkeeper-batsman Sanju Samson was not included in the Indian playing XI
The 75th Cannes Film Festival started in France. Ukrainian President Volodymyr Zelensky virtually
The people of Delhi-NCR have been getting relief from the humid heat for the last three days. The