GST Council has not sought input from States on Raising Tax Rates

GST Council has not sought input from States on Raising Tax Rates

Reetu | Apr 25, 2022 | Views 122878

GST Council has not sought input from States on Raising Tax Rates

GST Council has not sought input from States on Raising Tax Rates

According to sources on Sunday, the GST Council has not sought state input on raising tax rates.

According to them, the ministerial panel in charge of GST rate rationalisation has yet to submit its findings to the GST Council.

According to sources, no views on raising rates on 143 products have been sought from states, and there is no plan to shift more than half of items to the highest tax GST bracket of 28%.

The GoM (Group of Ministers), which is led by Karnataka chief minister Basavaraj S Bommai and comprises finance ministers from West Bengal, Kerala, Goa, Bihar, Uttar Pradesh, and Rajasthan, will recommend measures to increase revenue by rationalising tax rates.

The GST Council meeting has yet to be scheduled, although it is expected to take place in the second half of May.

Given the recent spike in inflation, policymakers would scrutinise any change in GST rates for fear of further price increases.

The GST is divided into four tiers, with rates of 5%, 12%, 18%, and 28 percent. There are also specific pricing for certain items, such as precious metals.

Some speculated that the 5% tax bracket could be split into three parts: 3%, 8%, and 3%, with the lower tax rate applied to vital items.

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