GST rate rationalisation gets tricky for NDA 3.0
Under GST essential and semi-essential goods, which constitute 70-80 percent of India’s consumption, attract a GST rate of five percent or 12 percent. However, luxury items are taxed at 28 percent, contributing significantly to government revenue. If rates are rationalised, government’s revenue may take a hit, but more than that lower income group will be impacted.