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The assembly committee proposes to increase the slab of the GST from 5% to 7% and from 18% to 20%

The Goods and Services Tax (GST) Adjustment Committee has proposed to increase the slab from 5% to 7% and from 18% to 20%, sources informed. CNBC-TV18.

The feasibility of merging 12% and 18% into a single 17% slab has yet to be explored, sources said.

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.

However, the group of ministers (GoMs) has yet to deliberate on changes in the tariff bands. They will meet on November 27 to finalize their views on the tariff structure and slab rationalization and submit their report to the GST Council for consideration at the next Council meeting which will likely take place in December.
The GST GM believes that rate rationalization exemptions should be minimized to prevent tax evasion. They believe the timeline for “implementing streamlined tariffs requires careful consideration”.

They are of the opinion that the reduction in the rate from 28 percent to 18 percent “cannot be proportional to the reduction in prices”. The elements of public consumption / sensitive public perception are important for careful considerations when exercising tariff rationalization, say GoMs.

(Edited by : Anshul)

First publication: STI


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