GST Fitment Committee proposes raise in GST Slab from 5% to 7% & 18% to 20%

GST Fitment Committee has proposed raising GST slab of 5% to 7% & 18% to 20%. Also, there’s a proposal of hiking GST on gold/silver to 5% from 3%. Additionally, they are also considering hiking the compensation rate from 1 percent to 1.5 percent.

However, the group of ministers (GoMs) has yet to deliberate on the rate slab changes. They will meet on November 27 to finalize their views on rate structure and slab rationalization before submitting their report to the GST Council for consideration at the next council meeting, which is expected to be in December.

The GST To avoid tax evasion, GoMs believe that rate rationalization exemptions should be reduced. They believe that the timing of “implementation of rationalized rates” should be carefully considered.

They believe that lowering the tax rate from 28 percent to 18 percent “cannot result in a commensurate price reduction.” GoMs believe that items of public consumption/sensitive public perception are important for careful considerations during the rate rationalization exercise.