Centre in favour of merging two tax brackets in GST

The central government is in favour of merging the goods and services tax (GST) rates of 12% and 18% into a single slab, a top finance ministry official said, acceding to a demand first made by some states and endorsed by the Fifteenth Finance Commission (FFC).


If the Council approves a single rate, items such as ghee, butter, cheese and spectacles may become expensive, while soap, kitchenware and apparel may become cheaper. But a final decision on the rates of individual items will be taken by a fitment panel.

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Apart from special rates of 0.25% and 3% on precious stones and metals, India currently has four primary GST rates of 5%, 12%, 18% and 28%. There is also a cess on luxury and demerit goods such as automobiles, tobacco and aerated drinks.


“There have been discussions regarding the merger of the two tax slabs. It could be taken up for consideration in the next (GST) Council meeting in March. States also need to agree,” the official cited above said on condition of anonymity.


Source : https://www.hindustantimes.com/business/centre-in-favour-of-merging-two-tax-brackets-in-gst-101613668909073.html

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