GST rates can be changed again, the government has proposed a change in tax 1 time a year

HIGHLIGHTS: Finance Minister Nirmala Sitharaman said that the Central Government has informally proposed to the GST Council to change the tax rates once a year.

Goods and Services Tax (GST) rates may change significantly. It has been learned that the government is in favor of making only three slabs by eliminating all the GST slabs. The idea is to include GST rates in three slabs of 8 percent, 18 percent and 28 percent. At present, the four slabs under GST are 5 percent, 12 percent, 18 percent and 28 percent.

It has been learned that food and beverage will be kept in the slab of 8 percent. Most items can go in a slab with a rate of 18%.

There will be a change once a year

Finance Minister Nirmala Sitharaman said that the Central Government has informally proposed to the GST Council to change the tax rates once in a year and not every three months because the current system has both government and business There remains some uncertainty.

The Finance Minister said that when you have reached a certain level in GST, more changes will cause problems, refund problems will occur. Thus, when the tax rate is reduced in one item, it will cause many other problems and it will either affect the refund or the businessman. They will not be able to plan correctly how much amount they have to keep for the whole year tax.

He said that similarly the governments of the Center and the states will not be able to estimate the income from GST in the entire year. He said that hence there is some degree of instability due to reduction or increase in GST for three months.

Source: Web