GST rates on these 143 items may raise. Read details here
New Delhi, Apr 25: The all-powerful Goods and Services Tax (GST) Council has reportedly sought states view on raising tax rates on 143 items, including jaggery and papad. Of the total 143 items, 92 per cent are proposed to be shifted from the 18 per cent tax slab to the top 28 per cent slab.
According to a report by Indian Express the proposal is seen as a part of long-considered rate rationalisation move under the Goods and Services Tax (GST) regime to lift government revenues.
These items include papad, gur (jaggery), power banks, watches, suitcases, handbags, perfumes/deodorants, colour TV sets (below 32 inches).
Chocolates, chewing gums, walnuts, custard powder, non-alcoholic beverages, ceramic sinks, wash basins also in the list.
The tax rate of Goggles, frames for spectacles/goggles and apparel and clothing accessories of leather, will also likely to be increased.
A lot of the proposed rate changes will reportedly mark the reversal of the rate cut decisions taken by the Council in the run-up to the 2019 general elections.
However, a PTI report said that the panel of ministers looking into GST rate rationalisation and is yet to submit its report to the GST Council.
Stating that views have not been sought from states on hiking rates on 143 items, sources said, there is also no proposal to shift more than half of the items to the highest tax GST slab of 28 per cent.
Currently, GST is a four-tier structure attracting a tax rate of 5, 12, 18 and 28 per cent.
Essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and sin goods attract cess on top of the highest 28 per cent slab. This cess collection is used to compensate states for the revenue loss due to GST rollout.
In big relief for consumers, the GST Council slashed the tax rates on a large number of items, including consumer durables, electronic goods and furniture items, from 28% to 18% In December, 2018.
The Council had last year set up a panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to suggest ways to augment revenue by rationalizing tax rates.