PHDCCI Requests 3 GST Slab Rate for High Consumption & Reduce Evasion

Industry chamber PHDCCI called a 3-tier GST rate edifice through the highest slab at 18% to assist in surging the consumption and lessens the evasion. Beneath the goods and services tax (GST). The 4 GST rate structures Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28% that privilege or impose the low rate of 5% tax on the important items and the top rate of 28% shall be levied. The additional slabs of the tax are 12% and 18%. Besides that, a 3% rate shall be applicable on the gold, silver, and the treated diamonds.

Sanjay Aggarwal who is the president of PHDCCI stated that the absolute GST rate shall have 2 to 3 slabs of GST rates.

“We suggest the lowest rate at 5 per cent, a moderate rate of 12 per cent, by clubbing the category of 12 and 18 per cent, and the highest rate of 18 per cent for luxury and other goods only, he said.”

This rationalization of rates shall rises the consumption and the tax revenue and lessens the compliance, diminishes the tax theft, and support to build the GST (Goods and Services Tax) is effective as well as easy tax as a simplified tax regime is a requirement of the hour to lessens the guidelines under the law pertaining to the tax concerns.

“This will also lead to the removal of hardships and provide ease of doing business and compliance among taxpayers, Aggarwal appended.”

Aggarwal moreover stated that the government had rationalized the GST rates in the 28% slab category and taking out nearly 200 items from the highest slab and putting either 18 or 12%.

There are still products like air conditioners and cement which are charged at 28% GST. On 1st July 2017, a nationwide GST has subsumed 17 locals levies such as excise duty, service tax, and VAT, and 13 cesses,