Ahead of the Goods and Services Tax (GST) Council meeting to be held in May, the government has sought suggestions from states to increase the tax rate on 143 items under GST.
According to sources, these items include papads, jaggery, power banks, watches, suitcases, handbags, perfumes, TVs (less than 32 inches), chocolates, chewing gum, walnuts, custard powder. May include non-alcoholic drinks, wash basins, goggles, eyeglass frames, clothing and leather goods.
According to the information, 143 items whose tax rates have been proposed to be increased. Out of this, 92 percent of the goods have been said to be transferred in the tax rate of 18 percent to 28 percent.
The GST Council has proposed to increase the tax rate on most of the same items on which the government had reduced the tax rate in November 2017 and December 2018 before the 2019 Lok Sabha elections.
The tax rate on perfumes, leather goods, chocolates, cocoa powder, beauty and make-up goods, crackers, lamps and sound recording equipment was reduced in November 2017 while TVs and monitors (less than 32 inches) were ), the rate of GST on digital and video camera recorder, power bank was reduced in December 2018, which is now in the process of increasing.
The tax rate on papad and jaggery, which have remained out of the purview of GST so far, may be reduced to 0-5 per cent while leather garments, hand-worn watches, perfumes, pre-shave/after shave, dental floss, chocolates It is proposed to increase the rate of GST on cocoa powder, wash basins, non-alcoholic drinks, handbags, plywood etc. from 18 per cent to 28 per cent.
It has been proposed to increase the rate of GST on walnuts from 5 per cent to 12 per cent, on custard power from 5 per cent to 18 per cent and on wooden items used in kitchens from 12 per cent to 18 per cent.
Significantly, in March, the GST collection reached its record level of 1.42 lakh crore, which was 14.7 percent higher than March 2021 and 45.6 percent higher than March 2020.