Beware of inflation: Be ready to loose your pockets, there may be a change in GST slab in the next meeting

According to media reports, a committee of state finance ministers can submit its report to the GST Council by the end of this month. Several steps can be suggested in this report like increasing the lowest GST slab and rationalizing the slab.

It is worth noting that at present there are four slabs in GST, in which the tax rate is 5 percent, 12, 18 and 28 percent. Essential goods are either exempted from this tax or those items have been kept in the lowest slab, while luxury goods have been kept in the topmost tax slab.

According to reports, if the lowest tax rate is increased from five per cent to eight per cent, then an additional revenue of Rs 1.5 lakh crore is expected to be generated annually. Food items packed in packets come in this slab. According to media reports, the Finance Ministers of the states can also suggest to the GST Council to make three-tier tax slabs. He says that this will make the tax system rational. If this proposal is approved in the next meeting, then all the goods and services falling in the 12 per cent bracket will come under the 18 per cent slab.

At the same time, reports are also coming out that the group of finance ministers can also propose to reduce the number of items which come under the exemption from GST. Including unbranded and unpackaged foods and dairy items. It is worth noting that the meeting of the GST Council can be held in the end of March or early next month.

According to media reports, a committee of state finance ministers can submit its report to the GST Council by the end of this month. Several steps can be suggested in this report like increasing the lowest GST slab and rationalizing the slab.

It is worth noting that at present there are four slabs in GST, in which the tax rate is 5 percent, 12, 18 and 28 percent. Essential goods are either exempted from this tax or those items have been kept in the lowest slab, while luxury goods have been kept in the topmost tax slab.

According to reports, if the lowest tax rate is increased from five per cent to eight per cent, then an additional revenue of Rs 1.5 lakh crore is expected to be generated annually. Food items packed in packets come in this slab. According to media reports, the Finance Ministers of the states can also suggest to the GST Council to make three-tier tax slabs. He says that this will make the tax system rational. If this proposal is approved in the next meeting, then all the goods and services falling in the 12 per cent bracket will come under the 18 per cent slab.

At the same time, reports are also coming out that the group of finance ministers can also propose to reduce the number of items which come under the exemption from GST. Including unbranded and unpackaged foods and dairy items. It is worth noting that the meeting of the GST Council can be held in the end of March or early next month.