The GST Council may increase the lowest tax slab from 5% to 8% in its next meeting. It is being told that a panel of state finance ministers can submit its report to the GST Council by the end of this month.
GST Slab: In the midst of rising inflation, there is another bad news for the general public. The government can increase the rate of tax on the lowest slab of GST. The GST Council may increase the lowest tax slab from 5% to 8% in its next meeting.
It is being told that a panel of state finance ministers can submit its report to the GST Council by the end of this month. In this, various proposals have been given to increase revenue including increasing the lowest slab.
According to a report by PTI news agency, the GST Council may increase the lowest tax slab from 5% to 8% in its next meeting. At present, there are four slabs of GST in which tax is levied at the rate of 5%, 12%, 18% and 28% respectively.
In this, the least tax is levied on such things which are needed the most. Cess is also levied on luxury and sin goods above the highest 28 per cent slab.
Level of tax slab may change
The agency said that by increasing the tax slab from 5% to 8%, annual revenue of 1.50 lakh crore can be obtained. If this is increased by one percent, then a revenue of Rs 50,000 crore can be obtained annually.
This mainly includes packaged foods. Apart from this, a suggestion can be made in this meeting to make the slab of GST of 3 levels. Three tier tax slabs in which the rates of 8%, 18% and 28% will be revised respectively.
Discounts can end with these items
If this proposal is passed in this meeting, then the goods and services which are currently taxed at 12%, will move to the 18% slab. Apart from this, other items can also be added under different tax slabs.
It may also be proposed to reduce the number of items exempted from GST. At present, unbranded and unpackaged food items and dairy items are out of the purview of GST. According to sources, the meeting of the GST Council may be held at the end of this month or early next month.
