look news india
Ahmedabad: Since there are four slabs of Goods and Services Tax, it has been learned that the government is thinking of making it three slabs instead of four, as the controversy over the classification of goods is increasing. Sanjay Agarwal, Chairman of the Central Board of Indirect Taxes and Customs, has also pointed towards this. Currently, GST has slabs of zero percent, 0.25 percent, 3 percent, 5 percent, 12 percent, 18 percent, 28 percent and 40 percent. Thus, there are eight slabs in total. These slabs apply to various goods and services. At present, there is a controversy in the raid on the manpower supplier whether his service comes under the 5 percent or 18 percent category.
Smuggling cases are also increasing due to high GST rates. Since the duty on gold is high, GST officials and customs officials together have caught about 4.8 percent of the gold being smuggled during the year 2023-24. The value of the gold thus seized is about Rs 2.9 billion.
There is every possibility that no changes will be made in the smaller trim slabs before 5%. But if reducing one or two slabs from 5, 12, 18 and 28 tax slabs does not make much difference to the government's GST revenue, then there is a possibility that it may be reduced to three slabs instead of four. Yes, it has to be kept in mind that reducing the slabs should not reduce the government revenue. Department experts are instructing that this exercise will be started in the next three to four months. GST expert Sameer Siddhpuria says that now there are more disputes about depositing money in IGST rather than GST. Commodity classification issues are common.
CBIC Chairman Sanjay Agarwal says that GST compliance has improved significantly since the implementation of the Goods and Services Tax in July 2017. Their income is Rs. 80,000 crore today. Rs. 1.74 lakh crore has been collected. GST revenue has increased by 11.7 percent in the financial year ending March 2024.
In the Union Budget for the year 2024-25 presented on Tuesday, the import duty on gold has been reduced by 6 percent. As a result, new employment opportunities will be created. Increasing exports of gold-silver jewelery and diamond jewelery will also create new employment opportunities. When the difference between imports and exports increased, the government imposed import duty. There has been increased internal public opposition to the 28 percent GST imposed on online gaming. From October 2023 till now, the government has recovered about Rs. 130 billion.