GST Slab
The Goods and Services Tax (GST) system may undergo major changes in the current financial year. Under this, the GST structure may go from the current four slabs to three slabs. A senior official privy to the matter told Business Standard that meetings of the Fitment Committee under the GST Council, comprising officials from the Center and states, are underway.
New work has been initiated on the process of creating a revenue structure as well as simplifying GST rates. It is exploring the possibility of removing some tariffs, particularly the 12 percent tariff.
The current rate structure includes rates of 5 percent, 12 percent, 18 percent and a maximum of 28 percent. Besides, there are also zero and special rates for certain goods and services. Fitment committee meetings are going on on this issue. The committee is preparing information for tax rates and possible revisions to them. It will be presented before the Committee of Ministers constituted by the GST Council to suggest changes in GST rates.
Two significant milestones were reached in the larger GST architecture. The President of the GST Appellate Tribunal (GSTAT) has been appointed & gross GST collections crossed a landmark of Rs 2 lakh crore – thanks to heightened economic activity.
This post is divided into three… pic.twitter.com/oIiYSsyJB3
— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 6, 2024
The revenue department has expressed the hope that the revised rates of GST will be implemented in the current financial year itself. “Simplification of rates is the first priority. Because the existing tax structure needs to be adjusted to remove some loopholes,” a senior official said. The council is expected to meet after the budget in July. The outline of rate change can be discussed.
The move comes at a time when GST collections crossed Rs 2 lakh crore in April. Monthly GST collection is expected to be Rs 1.7 to 1.8 lakh crore during the year. Uttar Pradesh Finance Minister Suresh Khanna is heading a seven-member committee of state ministers to ease rates. The finance ministers of the states of Goa, Kerala, Karnataka, West Bengal, Rajasthan and Bihar are included in this committee.
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• GST Collection: GST filled the government treasury! Collection at Rs 1.64 lakh crore in December
