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  4. Elevated inflation likely to delay Modi govt's plan to reduce GST slabs

Elevated inflation likely to delay Modi govt's plan to reduce GST slabs

GST Slabs Changes News: Reducing GST slabs will involve raising taxes on some items and a reduction as well on a few items.

Abhinav Ranjan Written by: Abhinav Ranjan New Delhi Updated on: May 26, 2022 12:28 IST
gst slabs cut
Image Source : INDIA TV

Elevated inflation likely to delay govt's plan to reduce GST slabs

Highlights

  • Goods and Services Tax regime was introduced on July 1, 2017
  • Around 18 cesses were abolished by with the implementation of GST
  • Currently, goods and services are taxed in four slabs -- 5%, 12%, 18% & 28%

GST Slabs In India, GST Slabs Changes News: A GST tax rate rationalisation is likely to be delayed due to elevated inflation. Sources said that it was being considered by the government to reduce Goods and Services Tax (GST) slabs possibly to three from four. 

The exercise would involve raising taxes on some items and a reduction as well on a few items. But with the inflation rate ruling at an all-time high, such an exercise is likely to be delayed.

The GST regime taxes goods and services in four tax slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

Sources told PTI that the current price situation leaves hardly any scope for rationalisation of GST rates.

The GST council had in 2021 set up a panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to suggest ways to augment revenue by rationalising tax rates and correcting anomalies in tax rates.

Around 18 cesses were abolished by the government with the implementation of GST on July 1, 2017.

READ MORE: GST Council recommendations not binding on Centre, states: SC

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