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In favor of a rising rate on gold and silver, says Najib Shah

The goods and services tax (GST) adjustment committee proposed to increase the slab from 5% to 7% and from 18% to 20%, CNBC-TV18 sources informed. They also plan to increase the compensation rate from 1% to 1.5%.

The proposed GST on precious metals (gold / silver) will drop from 3% to 5%, sources said. The feasibility of merging 12 percent and 18 percent into a single 17 percent slab, however, has not yet been explored.

However, the Group of Ministers (GoM) has not yet deliberated on these changes in the tariff bands. The Council is likely to move forward once the GoM takes final advice, which is likely November 27.

Discussing this, Najib Shah, former president of CBEC, said, “I’m all for a fusion of the 12 and 18 slabs, and bringing it to something between 16 and 17 (percent) and that would take support much of the income considerations. Once that happens, the neutral income rate, ideal of 15-17 or 16%, will also be largely achieved. “

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He further stated that he was in favor of increasing the rate on gold and silver from 3% to 5% because 3% is neither a here nor there rate, it is another special rate. .

“If the equipment committee recommended increasing the rate from 5% to 7%, they might have their reasons, but I’m not sure if the GoM will follow them just because it doesn’t really seem politically expedient to them to go on increasing that rate from 5 to 7%, “Shah told CNBC-TV18.

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(Edited by : Thomas abraham)

First publication: STI


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