Goods And Service Tax: On Monday, the GST rate of many products has been changed. After this decision taken by the Central Government, Revenue Secretary Tarun Bajaj said on Tuesday that there is a need to reduce the list of exempted products under the Goods and Services Tax (GST). This is especially necessary for the service sector.
The idea of removing the existing loopholes in the coming 3 years
Bajaj, while addressing a program of the Confederation of Indian Industry (CII), said that the government’s efforts will be made for the next two-three years. Over the years, there has been a need to remove the loopholes in the GST system. He said that the GoM is engaged in the work of rationalization of GST rates, but it will have to wait for some time.
Many products are exempted from GST
He has said that even now many products and services are exempted from GST, in which the number of services is more. Work needs to be done to reduce these.
What did the Secretary say on hospital room rent?
Responding to the questions being raised regarding the decision to levy 5% GST on non-ICU rooms in hospitals above Rs 5,000, Bajaj said, The number of hospitals charging this much rent is very less. He has said that if I can pay Rs.5,000 for hospital room rent, I can also pay Rs.250 of GST.
The highest revenue comes from the 18 per cent slab
He said that the share of 28 per cent tax slab in the gross GST revenue is 16 per cent. At the same time, 65 percent of the maximum revenue comes from the tax slab of 18 percent. At the same time, the contribution of five per cent and 12 per cent tax slabs to revenue is 10 per cent and eight per cent respectively.