City
Epaper

Official panel moots 2 GST slabs, more items at higher rates

By IANS | Updated: December 25, 2019 19:10 IST

A panel of officials on ways to augment Goods and Services Tax (GST) revenue has suggested two GST slabs of 10 per cent and 20 per cent and the transfer of some goods from the 18 per cent slab back to the highest 28 per cent category.

Open in App

The GST council has fixed over 1,300 goods and 500 services under four GST slabs of 5, 12, 18 and 28 per cent. This is besides the tax on gold which is at 3 per cent and rough, semi-precious and precious stones that attract a special rate of 0.25 per cent under GST.

The panel has made a presentation to the Bihar Deputy Chief Minister Sushil Modi who is heading the panel on GST revenue augmentation.

The recommendations could be discussed at the next GST Council meeting provided they make to the agenda, which has to be approved by all the states.

In its presentation, the committee alerted that there could be a shortfall of Rs 63,200 crore in GST collections in the current financial year and a deficit of as much as Rs 2 lakh crore by 2021.

Citing the suggestions made by the officials' panel, informed sourcs here said that its recommendations on increasing the GST revenue include moving items from 5 per cent and 12 per cent tax slabs to higher ones like 18 per cent, such as moving mobile phones from 12 to 18 per cent and precious metals from 3 to 5 per cent.

The paNEL also called for revising rates on certain items which were earlier taken higher to 18 per cent, and withdrawal of exemption for certain items.

The GST Council had cut rates on a number of consumer durables and paints to 18 per cent from 28 per cent in July 2018 in a bid to lower prices and boost consumption.

Modi, who is the Bihar Finance Minister and head of the Group of Ministers (GoM) on Integrated GST (IGST), had ruled out the possibility of changes to the rate structure at a time when exchequer revenues have moderated owing to the economic slowdown.

( With inputs from IANS )

Tags: biharSushil ModiThe Group Of Ministers
Open in App

Related Stories

National‘Terrorism Will Not Go Unpunished’: Prime Minister Narendra Modi Strongly Criticised the Pahalgam Terror Attack (Watch Video)

NationalBihar Shocker: Man Kills Girlfriend and Her Mother in Rage Over Her Upcoming Wedding, Then Shoots Himself in Suicide Attempt (VIDEO)

PunePune Businessman Abducted, Killed Over Ransom in Patna; 7 Arrested

PunePune Businessman Lured to Bihar with Fake Rs 100-Cr Deal, Murdered After Arrival

NationalTejashwi Yadav Claims More Than 3 cr Liters of Liquor Have Come to Bihar, Questions CM Nitish Kumar's silence

कारोबार Realted Stories

BusinessReliance posts record revenues in FY25, becomes first Indian company to cross Rs 10 lakh crore in total equity

BusinessIndia's direct tax collections surge 15.6% to Rs 27 lakh crore in 2024-25

BusinessCentre tells states to onboard eMaap portal to help consumers

BusinessMinister urges young IRS officers to strive for Viksit Bharat goal

BusinessMotilal Oswal reports Rs 63.2 crore loss in Q4, first in 5 years