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A panel of state ministers set up to suggest changes in the Goods and Services Tax (GST) regime has indicated that the existing four-tier tax structure should be retained.
The group's convenor and Bihar's deputy chief minister said in a statement, “Some members of the Group of Ministers (GoM) have insisted that there should be no change in the tax slabs under GST. The above indications were given after the meeting of this group on Thursday. However, the group's convenor said that no final decision has been taken on the GST tax slab yet, the discussion is still going on.”
A group of ministers met in New Delhi to review the efforts to change GST rates and slabs. These discussions are currently ongoing. The panel advised that the central and state revenue officials should review what impact the change in GST rates is likely to have on widely used goods. Also, the results of this review should be announced in the GST Council meeting to be held on September 9.
Out of the total six members of the ministerial group, two other members have also expressed the same opinion as the Deputy Chief Minister of Bihar. Bengal's Finance Minister said that I had said in the meeting that there should be no change in the GST slab. This presentation will be presented before the Council. Karnataka's Revenue Minister also expressed a similar tone. He said, GST slab is broadly stable. So what is the need to change it? What do you want to achieve by revising this slab? Currently, GST is levied in four slabs under the GST system. In these four slabs, rates of five percent, 12 percent, 18 percent and 28 percent are fixed.
Sign of status quo in GST slabs
Currently GST rates are fixed at 5%, 12%, 18% and 28%, with some items not taxed.
Panel suggesting reforms in GST slabs suggests three tax brackets instead of four tax brackets
One proposal calls for tax slabs of eight per cent, 16 per cent, 24 per cent, while the second one calls for nine per cent, 18 per cent and 27 per cent, while the third one calls for rates of seven per cent, 14 per cent and 21 per cent.
However, Karnataka's revenue minister said, when the GST slab is broadly stable, what is the need to change it? What do you want to achieve by revising this slab?
