“Three-slab GST very much a possibility”: CBIC Chairman
The re-constituted Group of Minister (GoM) is looking into various aspects of rate rationalisation under the GST, and it will submit a report on whether there is a need to revamp the GST rate structure, and examine the requirement of converging GST slabs, Central Board of Indirect Taxes Chairman Sanjay Kumar Agarwal said on Wednesday.
In an interview with FE, Agarwal said that some discussion on rationalising slabs is going on, and a three slab GST structure is “very much a possibility”. Presently the GST structure has four slabs – 5%, 12%, 18%, and 28%.
Finance minister Nirmala Sitharaman, last month, had said after the GST Council would take up the “important agenda” of rate rationalisation at the next meeting, likely in August. The re-constituted Group of Ministers on this, headed by Bihar deputy chief minister Samrat Choudhary, would make a detailed presentation on the work done so far and the unfinished agenda in the next meeting of the Council, the minister said.
Agarwal mentioned that the endeavour of the government is to achieve “revenue neutrality” with respect to GST, which means achieving a weighted average rate, under which there is no “major fall” in revenue collections of the government on a sustainable basis. The RNR during the introduction of GST was determined at 15%, which subsequently reduced to around 11% (by 2019) as GST rates on many products came down, he mentioned.
