GST Rates: There is a discussion about the rates of GST for the last few days that the government can change its slab. According to the information received from the sources, in view of the current situation, the scope of rationalization of GST rates on goods and services is less at present.
Considering reducing tax slabs
Let us tell you that at present, the government levies tax on goods and services at the rate of five per cent, 12 per cent, 18 per cent and 28 per cent under the GST regime. There are reports that it is being considered to reduce these tax slabs to three, possibly.
How much is the tax?
Under the new amendment being made by the government, the tax on some goods will be increased while the tax can also be cut on some products and services. In addition, gold and gold ornaments are taxed at the rate of three per cent.
Russo-Ukraine war also has an effect
Sources said, at present, inflation remains high. Thus, there is little scope for rationalization of GST rates. The economy was recovering from the effects of the Kovid pandemic, but this year the Russo-Ukraine war has hit the economy. “Earlier the GST Council was aware of the prevailing situation at that time,” it said.
28% tax is also levied
Under the GST, essential goods are either exempted or taxed at a lower rate, whereas items from a comfortable and social point of view are taxed at a higher rate of 28 per cent. Along with this, cess is also levied on such items. Cess is levied to compensate states for possible revenue loss due to the implementation of GST.
The GST Council had last year constituted a committee under the chairmanship of Karnataka Chief Minister Basavaraj Bommai to suggest ways to increase revenue by rationalizing tax rates and removing discrepancies in tax rates.
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