Change in GST Slab? Council may remove 5% rate, new slabs may come for some products
At present, there are four tax slabs of 5, 12, 18, and 28 percent in GST, and now the proposal to abolish the tax slab of five percent can be considered in the meeting of the Goods and Services Tax (GST) Council next month.
The proposal to abolish the tax slab of five percent can be considered in the meeting of the Goods and Services Tax (GST) Council next month. Given this information, sources said that in its place some high consumption products can be put in the slab of three percent and the rest in the slab of eight percent. Most of the states are unanimous in increasing the revenue so that they do not have to depend on the Center for compensation.
At present, there are four tax slabs of 5, 12, 18, and 28 percent in GST. In addition, gold and gold ornaments attract a tax of three percent. Apart from this, there are some unbranded (unbranded) and unpacked (unpacked) products that do not attract GST. Sources said that in order to increase revenue, the council may decide to cut the list of exempted items by bringing some non-food items into the three percent slab.
Sources said that discussions are on to increase the five percent slab to 7 or 8 or 9 percent. The final decision on this will be taken by the GST Council. The GST Council headed by the Union Finance Minister includes the Finance Ministers of all the states.
The police team has obtained several video footage of the area. Some of these people have also been identified. Officials say that the culprits will be dealt with strictly. Delhi Police has constituted 10 teams to investigate the riots. The investigation of the case has been handed over to the Crime Branch.
As per calculations, every one percent increase in the five percent slab (which mainly includes packaged food items) will result in additional revenue of roughly Rs 50,000 crore annually. While various options are being considered, the council is expected to agree on eight percent GST for most items. At present, the rate of GST on these products is five percent.