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A proposal to introduce a uniform 12 percent Goods and Services Tax (GST) across the textile value chain may be taken up by the GST Council before September as part of the next phase of GST reforms, a senior government source told Moneycontrol.
The matter concerns a category called non-motorized ‘mobility scooters’ – the kind children zip round on, whether sitting or standing. Those fitted with lights are taxed at 18%, whereas those without lights attract only a 12% Goods and Services Tax (GST).
GST revamp on the cards: Since its launch in 2017, the Goods and Services Tax (GST) is set to undergo its first major revamp. The biggest takeaway from this move from the common man’s perspective is that the GST slabs may be rejigged, with items in the 12% category of tax possible moving to the 5% bracket.
Union Home Minister Amit Shah will lead talks with states and central ministries to build consensus on key changes to the Goods and Services Tax (GST) system, according to an Indian Express report.
Two categories of items currently under the 12 percent GST rate – medicines and tractors – have emerged as sticking points in the effort to do away with the tax slab altogether despite consensus, with states weighing tax implication and socio-economic impact of such a move
With monthly GST collections now averaging over ₹2 lakh crore and state revenues remaining robust, tax experts believe the stage is set for a major structural reform: eliminating the 12% slab and moving towards a three-rate GST system.
Ahead of the goods and services tax (GST) council meeting, industry body CII on Tuesday sought early conclusion of the rate rationalisation process in a meeting with finance minister Nirmala Sitharaman, sources said.
The Goods and Services Tax Council will meet soon and discuss rate simplification and rationalisation besides the future of compensation cess.
The Group of Ministers (GoM) on Goods and Services Tax (GST) rate rationalisation has begun reviewing the classification of food items under different tax slabs to address chronic ambiguities that have led to litigation and revenue leakages.
Despite the Centre’s push to simplify the Goods and Services Tax (GST) structure by eliminating the 12% slab, the Group of Ministers (GoM) on GST rate rationalisation remains divided on the proposal.