Economy
GST: States Panel To Suggest Merging 12 Per Cent And 18 Per Cent Slabs Into Single 15 Per Cent Rate
GST collections
A committee of state ministers instituted to suggest changes to the GST rate structure might propose merging the 12 per cent and 18 per cent slabs into a single 15 per cent levy.
“Most of the members agreed that a rate hike is imminent but were apprehensive of (the) timing,” an official in the know of developments was quoted by the Economic Times (ET).
However, the panel is not likely to suggest increasing the threshold rate to 8 per cent from the present 5 per cent owing to inflation-related concerns.
The group of ministers (GoM) will meet this week to take a conclusive call on these rates.
The revenue-neutral rate, i.e. the rate at which there is no loss of tax revenue for the states or the centre after the switch to GST stands at 11.6 per cent now.
This rate has dropped down to 15.5 per cent from 2017 owing to the exemptions and reductions in rates on several goods.
The GST council will be meeting early next month to consider the aforementioned report and the revenue status of the states.
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