SME Times News Bureau | 25 Dec, 2019
A panel constituted to explore ways to augment
Goods and Services Tax (GST) revenue has suggested two GST slabs of 10 per cent
and 20 per cent and the transfer of some goods from the 18 per cent slab back
to the highest 28 per cent category.
The GST council has fixed over 1,300 goods and 500 services under four GST
slabs of 5, 12, 18 and 28 per cent. This is besides the tax on gold which is at
3 per cent and rough, semi-precious and precious stones that attract a special
rate of 0.25 per cent under GST.
The panel has made a presentation to the Bihar Deputy Chief Minister Sushil
Modi who is heading the panel on GST revenue augmentation.
The recommendations could be discussed at the next GST Council meeting provided
they make to the agenda, which has to be approved by all the states.
In its presentation, the committee alerted that there could be a shortfall of
Rs 63,200 crore in GST collections in the current financial year and a deficit
of as much as Rs 2 lakh crore by 2021.
Citing the suggestions made by the officials' panel, informed sourcs here said
that its recommendations on increasing the GST revenue include moving items
from 5 per cent and 12 per cent tax slabs to higher ones like 18 per cent, such
as moving mobile phones from 12 to 18 per cent and precious metals from 3 to 5 per
cent.
The paNEL also called for revising rates on certain items which were earlier
taken higher to 18 per cent, and withdrawal of exemption for certain items.
The GST Council had cut rates on a number of consumer durables and paints to 18
per cent from 28 per cent in July 2018 in a bid to lower prices and boost
consumption.
Modi, who is the Bihar Finance Minister and head of the Group of Ministers
(GoM) on Integrated GST (IGST), had ruled out the possibility of changes to the
rate structure at a time when exchequer revenues have moderated owing to the
economic slowdown.