Monday, October 3, 2022
HomeBusinessThere is no idea to increase the minimum slab of GST from...

There is no idea to increase the minimum slab of GST from 5 percent to 8 percent – Sources

GST: A group of ministers constituted by the Goods and Services Tax (GST) Council to rationalize rates is yet to take any consideration on the issue. An official source gave this information. The seven-member Group of Ministers headed by Karnataka Chief Minister Basavaraj S Bommai is likely to meet early next month. The group includes finance ministers of West Bengal, Kerala, Goa, Bihar, Uttar Pradesh and Rajasthan.

Currently not offered
The source, on condition of anonymity, said that the group has not proposed to increase the lowest slab under GST from five per cent to eight per cent. The final decision on any recommendation of the group rests with the GST Council. The GST Council, headed by Union Finance Minister Nirmala Sitharaman, includes representatives from all states and union territories.

No date announced for GST Council meeting yet
No date has been announced yet for the meeting of the GST Council, but this meeting can be held in the second fortnight of May. The source said that with the inflation rate picking up in recent months, policy makers will keep a close watch on any changes in the GST rates. Inflation may increase in case of increase in GST rates.

wrong news coming
There are currently four slabs under GST – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Also there are special rates for certain items like precious metals. Earlier there were reports that the five per cent slab could be broken into three per cent and eight per cent, while levying lower taxes on essential commodities.

So far GoM hasn’t even considered
However, sources said that leave aside the GST Council, so far the GoM has not even thought of rationalizing the rates. The source said that changing the rates is a political decision and when the GST Council considers it, it will also have political implications.

- Advertisement -
MOBILE

Auto

Two Wheeler

BUSINESS AND FINANCE

Digit News