Consideration is being given to increase GST in the country.
Consideration is being given to increase GST in the country. According to a Bloomberg report, the government in India is considering increasing the tax on some goods and services. The report said that this move is being considered with the objective of creating a simpler tax rate structure. The Panel on Goods and Services Tax, is expected to meet in December. Finance Minister Nirmala Sitharaman is chairing this panel. This can be changed from the current four-rate system.
At present there are four GST rates.
At present, GST is levied in the country at the rate of 5 per cent, 12 per cent, 18 per cent and 28 per cent. In this, some essential goods like food items are taxed at the lowest rate and luxury goods at the highest rate.
At least two rates can be increased. People with knowledge of this matter have told Bloomberg. It has been told in the report that the lowest two rates can be increased by one percentage point. These can be increased to 6 percent and 13 percent. Under this phased scheme, the rates will be brought down from four to three. The state finance minister can submit his proposals in this matter by the end of next month.
Bloomberg reported that it had contacted the Ministry of Finance for its response. But the spokesperson of the Finance Ministry has not yet given any reply on this. This plan to increase the GST rates is being done at a time when elections are going to be held in the big states of the country early next year. This move can be criticized in the country. Right now India is emerging from the damage done by the corona virus epidemic.
What is GST?
Let us tell you that from July 2017 the government implemented GST. When we buy a product or take a service, we have to pay tax for it. Under the ‘One Nation, One Tax’ system of GST, you have to pay only one tax.
The biggest feature of GST is that the rate of this tax on any goods or services is the same across the country. That is, the customer or consumer present in any part of the country has to pay the same tax on that goods or services. GST is divided into 3 types- Central GST(CGST), State GST(SGST) and Integrated GST(IGST).
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