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

IND A vs USA: The schedule for the T20 World Cup warm-up match has been released; how to watch the India vs USA live match?

The schedule for the ICC Men's T20 World Cup warm-up matches has been announced. The tournament o

IND vs ENG Playing-11: Suspense on Virat Kohli's playing in the first ODI against England, this may be the playing-11 of both the teams

After the T20 series between India and England, the ODI series will start today. The first match

Donald Trump: After the Paris Agreement, America also leaves the World Health Organization; Trump's big decision after the oath

President Donald Trump signed the order to withdraw the US from the World Health Organization jus

Ram Mandir: 'The public is not with the one who is not with Lord Ram', know who said what regarding the Ram Mandir program

Preparations for the Pran Pratishtha program of Ram Temple are at their peak. Many opposition lea

Shah Rukh Khan Death Threat: The person who threatened to kill Shah Rukh Khan had these dangerous intentions, revealed

A shocking revelation has been made in the case of threatening to kill Bollywood actor Shahrukh K

Be prepared to face severe heat, 'fire' will rain from the sky in 16 states including UP-Bihar till April-June; IMD gave an update

Summer has also started with the arrival of April. India is going to experience severe heat this

‘RCB has won the IPL…' Former star cricketer made a prediction; There was a stir in the cricket world.

Former South African fast bowler Dale Steyn has made a big and shocking prediction regarding IPL

Corona not controlled: Corona cases increased again after a day, 3,205 new patients were found in 24 hours; 31 dead

The havoc of Corona in the country is not taking its name to stop. In the last 24 hours, 3,205 ne

Andhra Train Accident: Two passenger trains collide in Andhra Pradesh, 13 dead so far, 50 injured

A major accident occurred in Andhra Pradesh on Sunday due to a massive collision between two trai

This bowler of 7.75 crores will join the RCB team between IPL 2023! Wreaks havoc with a speed of 150

Josh Hazelwood Likely To Join RCB Team in between IPL 2023. The 32nd match of IPL 2023 is being p

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