GST rate rationalisation likely to take place after Lok Sabha polls: FinMin official
GST rate rationalisation, in all probability, will take place only after Lok Sabha polls, a senior Finance Ministry official has said.
“Some minor changes can take place as and when required and based on the recommendations of the GST Council. However, you can expect overall changes only after election,” the official told businessline . The next meeting of the Council is expected to take place either late this month or next month, and that will be the last one before the general election. The date of the meeting has not been finalised yet, the official added.
Earlier, when BusinessLine asked Revenue Secretary Sanjay Malhotra about the rate rejig exercise, he said, “The GST Council, on a regular basis, reviews rates and gives appropriate recommendations. It is an ongoing exercise. As of now, there is no big proposal to make changes in rates, but final decision has to be taken by the GST Council. Please note that rates under GST for maximum goods and services are lower than sales tax-VAT regime.”
As of date, over 1,200 goods and services except those on the negative list, attract GST. Four primary GST rates are 5, 12,18 and 28 per cent. Some special rates are 0.25 per cent, 1.5 and 3 per cent. Some of the items are in NIL rates. Twenty-eight per cent slab in GST contributes 16 per cent to the gross GST revenue, while the major chunk of 65 per cent comes from the 18 per cent slab. The slabs of 5 per cent and 12 per cent contribute 10 per cent and 8 per cent of the total gross GST revenue, respectively.
