States prefer for keeping existing 4 slab structure in GST

A panel of state ministers tasked with suggesting changes to the Goods and Services Tax (GST) regime has signaled that the current four slab tax structure should remain in place-“for now”.

However, the discussions are still at a preliminary stage, with no decisions reached yet.

The GoM convened in the national capital to review the progress of ongoing efforts to rejig GST rates and discuss the course forward.

The panel advised central and state revenue officers to examine the potential impact of rate changes on mass-consumption items and present their findings before the GST Council at its meeting on September 9.

Karnataka Revenue Minister voiced as: “The GST regime has broadly stabillised. So why disturb it? What do you achieve by disturbing it?

Under the current GST regime, goods and services are taxed across five broad slabs – zero percent 5 per cent, 12 per cent, 18 per cent, and 28 per cent. A cess is levied on top of the 28 per cent rate for luxury and sin goods. Some items are not taxed. The GoM, with draws input from a fitment committee of central and state revenue officers, is expected to deliver a status report at the next council meeting.

It is understood that the fitment panel has suggested three options against the current four-slab structure beside zero.

i) 8 per cent, 16 per cent, and 24 per cent.

ii) 9 per cent, 18 per cent, and 27 per cent.

iii) 7 per cent, 14 per cent, and 21 per cent.

Each model aims to shield essential goods from significant tax increases and may include a provision of tax abatements.

The GoM also deliberated on the taxation of health and life insurance, an issue referred to the fitment committee.

 👇 Please Note 👇

Thank you for reading our article!

If you don’t received industries updates, News & our daily articles

please Whatsapp your Wapp No. or V Card on 8278298592, your number will be added in our broadcasting list.