GST slab: The central government plans to raise the minimum excise duty on goods and services from 5 per cent to 8 per cent. The central government plans to raise the minimum excise duty on goods and services from 5 per cent to 8 per cent.
It is expected that a key decision in this regard will be taken at the next GST Council meeting. Currently GST is taxed in 5 stages of 5,12,18,28. The federal government plans to raise the minimum rate from 5 percent to 3 percent to 8 percent.
Earlier, the central government had planned to combine the 12 and 18 per cent tax to bring it to 16 per cent, but it failed. The next step is to raise the minimum tax.
The central government hopes that by raising this tax the state governments will be less dependent on the central government for finance. In addition, the government plans to bring all those currently taxed at 12 percent into the 18 percent tax.
Thus the minimum GST tax in the country will be 8%. As a result, all essential commodities under the 5 per cent tax will be taxed at 8 per cent, making the prices of those commodities higher and the middle and common people more disadvantaged.
Sugar, groceries, cooking oil, coffee, coal, life-saving medicines and indian sweets are all subject to 5 per cent tax.
A decision to raise the 5 per cent tax to 8 per cent may be taken at the GST Council committee meeting later this month or early April.
The GST Committee will discuss the report at the forthcoming meeting of the GST Committee, which will soon submit a report prepared by the state finance ministers in this regard.
When the current level is raised from 5 per cent to an additional 3 per cent, the government will get an additional Rs 1.50 lakh crore per annum.
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