Fitment committee proposes raising GST slab of 5% to 7% and 18% to 20%

By:
Categories: GST Recent News

The Goods and Services Tax (GST) fitment committee has proposed raising slab of 5 percent to 7 percent and 18 percent to 20 percent, sources informed CNBC-TV18.

The feasibility of merging 12 percent and 18 percent to one single slab at 17 percent is, however, yet to be examined, sources said.

They are also considering hiking compensation rate from 1 percent to 1.5 percent. The proposed GST on precious metal (gold/silver) will be hiked from 3 percent to 5 percent, sources said.

However, group of ministers (GoMs) are yet to deliberate on the changes in rate slabs. They will be meeting on November 27 to finalise views on rate structure and rationalization of slabs and submit its report to GST Council for consideration in the next council meeting which is likely to take place in December.

The GST GoMs feels that rate rationalization exemptions should be minimised to avoid tax evasion. They think that timing of “implementation of rationalized rates requires careful consideration”.

They are of a view that reduction of 28 percent rate to 18 percent “can not commensurate price reduction”. Items of public consumption/ sensitive public perception is important for careful considerations during rate rationalization exercise, GoMs believe.

Soucce from: https://www.cnbctv18.com/finance/fitment-committee-proposes-raising-gst-slab-of-5-to-7-and-18-to-20-11560732.htm

CLOSE
CLOSE