GST Fitment Committee proposes hiking GST Slabs and on Gold and Silver

GST Fitment Committee recommends raising the GST slabs from 5% to 7% and from 18% to 20%. A suggestion has also been made to increase the GST on gold and silver from 3% to 5%.

GST Fitment Committee Proposals

Hiking GST on Gold/Silver from 3% to 5% 

• The GST Fitment Committee proposes increasing the GST Slab from 5% to 7% and from 18% to 20%. The feasibility of merging the 12 percent and 18 percent slabs into a single slab at 17 percent is still being investigated
• To examine raising the compensation rate from 1% to 1.5 percent, the fitment committee considers raising the GST on gold and silver from 3% to 5%
• The modifications in rate slabs have yet to be discussed by a group of ministers.
• On November 27, the GoM will convene to finalize the pricing structure and slab optimization. The GoM will present its report to the council at its next meeting, which is expected to be in December.
• GST In order to prevent tax evasion, the GoM on rate rationalization believes that exemptions should be limited.