GST latest news: The Goods and Services Tax (GST) Council is going to meet next month. This meeting is considered very special in every respect. According to different media reports, the government may change the rates of GST. According to a report in the Indian Express, the GST Council has sought the views of states for increasing rates on about 143 items. This will help the government to generate revenue and other states will not have to depend on the Center for compensation.
Presently these items are in 18% tax slab
According to the report, of the 143 items on which there is talk of increasing the rates of GST, most of them currently fall in the 18 percent tax slab. Out of these 143 items, it is proposed to transfer 92% from the 18% tax slab to the 28% tax slab.
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Prices of these items may increase
According to sources, the items whose GST rates may be hiked are papads, jaggery, power banks, watches, suitcases, handbags, perfumes, color TV sets (less than 32 inches), chocolate, chewing gum, walnuts, custard powder, non-alcoholic. Includes beverages, ceramic sink wash basins, goggles, frames for glasses, and leather apparel and clothing items.
GST rates on items like papad and gur (jaggery) may be increased from zero to 5 per cent. Leather Apparel and Accessories, Wristwatches, Razors, Perfume, Pre-shave/After-Shave Preparation, Dental Floss, Chocolate, Waffles, Cocoa Powder, Coffee Extracts and Concentrates, Non-Alcoholic Beverages, Handbags/Shopping Bags, Ceramics The rate of GST on construction items of sinks, wash basins, plywood, doors, windows, electrical equipment (switches, sockets etc.) may increase from 18 per cent to 28 per cent.
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Changes already made
Significantly, the GST Council had taken decisions regarding reduction of rates on many items in November 2017 and December 2018 for the indirect tax regime. The November 2017 meeting in Guwahati reduced rates on items such as perfumes, leather apparel and accessories, chocolates, cocoa powder, beauty or makeup items, fireworks, plastic floor coverings, lamps, sound recording equipment and armored tanks. Was gone and now there is a proposal to increase again. Similarly, the GST rates for items such as color TV sets and monitors (below 32 inches), digital and video camera recorders, power banks were reduced in the December 2018 meeting and it is now proposed to increase it.
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Presently there is a four tier structure of GST.
Explain that at present, GST is a four-tier structure, which is taxed at the rate of 5%, 12%, 18% and 28% respectively. Essential goods are either exempted or taxed in the lowest slab, while luxury and demerit items are subject to the higher tax slab. Luxury and sin goods attract the highest cess above the 28 per cent slab. Tax collection on this is used to compensate the revenue loss to the states after the rollout of GST. In addition, gold and gold ornaments attract a tax of 3%. At the same time, unbranded and unpackaged food items and dairy items are out of the purview of GST.
