Goods and Service Tax (GST) can drop down from five to three for the benefit of the consumers. However, it could take some time depending on the state’s revenues. ‘There is an intention to reduce it to three slabs but it will take some time as it is related to states’ revenue’, said Sushil Kumar Modi, Deputy Chief Minister of Bihar in an interview to PTI Bhasha.
Sushil Modi also heads the high-level minister panel on GST. He explained that a “no revenue loss” had to be ensured after the implementation of GST. And that the rates could be brought down only when the revenue stabilized. Now that the average monthly revenues from GST is approximately at ₹95,000 cr, the rates of many consumer goods could be reduced, he says. This would benefit the middle class.
Currently the five tax slabs are 5%, 12%, 18%, 28% and 3% (for gold and other precious stones).
28th GST council Meeting
At the 28th meeting of GST council, seventeen items were brought down from the 28% slab to 18% slab. Sanitary napkins, which came under 12% slab, were exempted from GST. Rakhis without precious metals and saal leaves were amongst the few others that were exempted from GST. This would come into effect from July 27 onwards. However, it would also cost the government ₹7,000 cr.
Items revised before
During the meeting of GST council in January, twenty-nine items were revised. And the highest number of items revised was in the November 2017 meeting. About two hundred items falling in the 28% slab were brought down under 18% slab and 12% slab.
In their 29th meeting on the 24th of August, the focus would be on MSMEs.
‘28% tax should be done away with. The issue is being unnecessarily dragged’, Delhi Deputy Chief Minister, Manish Sisodia who holds a finance portfolio, said.