GST Council may cut tax exemptions, hike rates

The GST Council may cut down tax exemptions, hike rates on selected items and cut down tax slabs to three from four slabs of 5%, 12%, 18%, and 28%.

The Council may also remove anomalies from taxing raw materials and intermediates, the report said. The revision is expected to simplify the rate structure and lift revenue for states.

The government and states are also seen implementing a proposed structural revamp of GST in phases, keeping in mind the impact on consumption. Moreover, the GST compensation given to states will end in June, the report said.

The revisions may include the implementation of tax rate changes needed in the textile industry to correct the inverted duty structure. Earlier, several items in the textile and apparel sectors were deferred from a rate hike from 5 percent to 12 percent by the GST council on December 31.

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