Inflation will increase again: GST Council may increase the minimum tax rate; There may be a proposal to increase the slab from 5% to 8%

Posted on 7th Mar 2022 12:34 pm by rohit kumar

Once again there are signs of rising inflation. Everything, including edible oils, spices, tea, coffee, sugar, sweets, and life-saving drugs like insulin, can be costly. The GST Council may consider increasing the minimum rate of Goods and Services Tax (GST) from 5% to 8% in the 47th meeting to be held.

 

It is also possible to truncate the list of exempted products in the GST regime to increase revenue and eliminate the dependence of states on the Center for compensation. According to sources, a group of state finance ministers (GOM) is likely to submit its report to the council by the end of this month. It may suggest several steps like raising the lowest tax slab and rationalizing the slab.

 

Presently there are four rates in the tax slab of GST – 5%, 12%, 18%, and 28%. Essential commodities are exempt from this tax or are kept in the lowest slab. Luxury items are kept in the highest tax slab. According to sources, the GoM may propose to increase the minimum rate of tax from 5% to 8%.

 

Items and services falling at the lower rate of 5% of GST

 

key items

 

Edible Oil, Spices, Tea, Coffee, Sugar, Sweets, Cashew

Life-saving drugs and medicines like insulin, coins-medals, ice

Walking Stick, Accessories for the Handicapped, Appliances

Biogas, Fertilizers, Incense sticks

Coal, Fly Ash Blocks, Marble Debris, Matings, Coir Mats, and Floor Coverings

Wind-Based Flour Mill or Wind Mill, Natural Cork

Motor cab rental without fuel cost

Transport services by AC vehicles, radio taxis

aircraft leasing

Pilgrimage scheduled transport or travel by air (also chartered flight)

Tour Operator Services.

print media advertising space

employment in newspaper printing

Shipping goods out of the country.

 

Also Read: India's export-import in February: The country's merchandise exports grew by 22.36% in February, the trade deficit was $ 21.19 billion

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