GST Council not intend to raise tax slab from 5% to 8%, says Centre

GST Council not intend to raise tax slab from 5% to 8%, says Centre

Reetu | Apr 19, 2022 |

GST Council not intend to raise tax slab from 5% to 8%, says Centre

GST Council not intend to raise tax slab from 5% to 8%, says Centre

The Narendra Modi government strongly disputed media allegations that the Goods and Services Tax (GST Council) was preparing to hike the tax rate from 5% to 8%. According to sources in the Modi government, the news is speculative and contains no facts.

According to government sources, the Group of Ministers has yet to complete and submit its report on rate rationalisation to the council. The date for the next meeting has not been established because finance minister Nirmala Sitharaman, the GST council‘s chairperson, is now in the United States on an official visit.

Previously, it was reported that the GST council intended to eliminate the 5% tax band and replace it with 3% and 8% tax slabs. Items of mass consumption will be classified as 3%, while the rest will be classified as 8%.

The GST now has a four-tier slab structure of 5%, 12%, 18%, and 28%. Gold and gold jewellery are subject to a 3% tax.

According to media sources, the council may reduce the list of exempt items by transferring some non-food items to the 3% tax bracket. Last year, the GST Council convened a Group of Ministers on rate rationalisation, led by Karnataka Chief Minister Basavaraj Bommai. Amit Mitra, finance minister of West Bengal, KN Balagopal, finance minister of Kerala, and Tarkishore Prasad, deputy chief minister of Bihar, were among those on the panel.

According to government sources, the Group of Ministers has yet to complete and submit its report on rate rationalisation to the council. Also, the date for the next meeting has not been established because finance minister Nirmala Sitharaman, the GST council’s chairperson, is now in the United States for IMF and G20 meetings. Last year’s GST council meeting was held on December 31.

Essential items are either exempted or taxed at the lowest rate of 5%, whilst luxury and detritus items are taxed at the highest rate of 28%. A cess is paid on luxury and demerit items at the highest level.

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
Tax Alert: Vivad Se Vishwas Scheme 2024 Deadline Extended Income Tax Department raids offices and homes of Pushpa 2 and Game Changer Producers in Hyderabad CBIC exempt GST for Motor Vehicle Accident Fund Insurance and NSDC Training Partners ED busted Rs.10,000 Crore Money Laundering Network Involving CAs and Hawala Dealers CBIC notifies Changes in GST Rate for Hotels and Restaurant Services w.e.f. 01.04.2025View All Posts