A Group of ministers would need to see towards the rate rationalization by the Goods and services tax council is thinking to maintain an 18% and 28% slab and ending a 12% slab.
People who know about the development, the majority of the members of the group learn that a 12% slab accounts for nearly 8% of the total GST revenue and could finish through that.
“This is one of the options. At present, the 12% slab contributes the least to revenues. It would be easiest to remove it,” said one of the experts.
Butter, ghee, fruit juice, almonds, footwear with up to Rs 1000 various processed food items, solar water heaters, and hotel accommodation cost up to Rs 1000 per day, among others comes within the 12% tax bracket.
GST council would take the last decision on any amendment in the rates. The GoM is ruled by the Karnataka chief minister Basavaraj Bommai would provide the chores to recommend the rate rationalization, integration of the slabs, verify the exempt list and correct the duty inversion. The GoM was provided another three months in June to submit its final report.
In the month of June, the 47th GST official meets held in Chandigarh proceeded with various items along with the tetra pack, printing, writing or drawing ink, knives with cutting blades, paper knives, pencil sharpeners, and blades, spoons, forks, ladles, skimmers, dairy machinery, power pumps and LED lamps to the 18% slab from 12%.
GoM is in the execution of assessing the revenue impact of moving items from one slab to another. The GoM seems to maximize the revenue without causing bigger trouble.
In many states GST was subsumed along with the central taxes, it has 4 slabs -5%, 12%, 18%, and 28%. While from the 4 major slabs. 1.5% and 3% it applies to the cut diamonds and jewellery and precious metals, apart from that a top-up compensation cess would be imposed on the chosen items like automobiles. The important items would draw a 5% GST and sin and a 28% highest rate will be levied on the luxury goods.
Also Read: Revised GST Slab Rates in India FY 2022-23 Finalized by the GST Council
For the contribution to the revenue kitty, 28% slab contributes 16%. An 18% slab would be secured with fewer items but contributes a majority stake or 65% of revenues. A slab of 5% and 12% contribute 10% and 8% to kitty.
One of the members of GoM said that he does not have any intention to make any change in the 5% or 28% slab.
