new Delhi7 minutes ago
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Once again there are signs of rising inflation. Everything, including edible oils, spices, tea, coffee, sugar, sweets and life-saving drugs like insulin, can be costly. In fact, the GST Council may consider increasing the minimum rate of Goods and Services Tax (GST) from 5% to 8% in the 47th meeting to be held.
It is also possible to truncate the list of exempted products in the GST regime to increase revenue and eliminate the dependence of states on the Center for compensation. According to sources, a group of state finance ministers (GOM) is likely to submit its report to the council by the end of this month. It may suggest several steps like raising the lowest tax slab and rationalizing the slab.
The GST collection in the month of February stood at Rs 1,33,026 crore. In the data released by the government, it was found that this time there has been an increase of 18% as compared to last year.
Presently there are four rates in the tax slab of GST – 5%, 12%, 18% and 28%. Essential commodities are exempt from this tax or are kept in the lowest slab. Luxury items are kept in the highest tax slab. According to sources, the GoM may propose to increase the minimum rate of tax from 5% to 8%.
GST Items and services falling within a lower rate of 5%
key items
- Edible Oil, Spices, Tea, Coffee, Sugar, Sweets, Cashew
- Life saving drugs and medicines like insulin, coins-medals, ice
- Walking Stick, Accessories for the Handicapped, Appliances
- Biogas, Fertilizers, Incense sticks
- Coal, Fly Ash Blocks, Marble Debris, Matings, Coir Mats and Floor Coverings
- Wind-Based Flour Mill or Wind Mill, Natural Cork
- Motor cab rental without fuel cost
- Transport services by AC vehicles, radio taxis
- aircraft leasing
- Pilgrimage scheduled transport or travel by air (also chartered flight)
- Tour Operator Services.
- print media advertising space
- employment in newspaper printing
- Shipping goods out of the country.