12% GST slab likely to be removed, 18% slab may directly follow the 5% slab
India’s Goods and Service Tax Council is likely to eliminate the 12% tax slab. The plan is to maintain only the 5% and 18% slabs, thereby removing the existing 12% slab entirely, as per reports. Currently, there are four GST slabs—5%, 12%, 18%, and 28%.Upon reviewing the GST tax slab structure, the Council has reportedly realised that the 12% slab holds little significance. The items currently under the 12% category can be easily shifted either to the 5% or 18% slab without significantly impacting overall revenue. The restructuring will be done in such a way that it does not affect the total GST revenue. The Council is expected to take a final decision on this matter soon.Most state governments and central government officials have supported the proposal to remove the 12% GST slab. The group of ministers has also expressed consensus on this reform.Items currently under the 12% slab likely to be shifted include:Condensed milk, 20-liter water bottles, walkie-talkies, contact lenses, cheese, dates, dry fruits, frozen vegetables, sauces, pasta, jams and jellies, fruit juice-based beverages, carpets, umbrellas, caps, bicycles, household utensils, furniture made from cane wood, pencils, crayons, handbags, jute or cotton shipping bags, footwear priced under ₹1,000, diagnostic kits, marble, and granite blocks.Also read:Supplier will have to pay GST even on fraudulent orders, says Gujarat Authority for Advance Ruling
India’s Goods and Service Tax Council is likely to eliminate the 12% tax slab. The plan is to maintain only the 5% and 18% slabs, thereby removing the existing 12% slab entirely, as per reports. Currently, there are four GST slabs—5%, 12%, 18%, and 28%.
Upon reviewing the GST tax slab structure, the Council has reportedly realised that the 12% slab holds little significance.
The items currently under the 12% category can be easily shifted either to the 5% or 18% slab without significantly impacting overall revenue. The restructuring will be done in such a way that it does not affect the total GST revenue. The Council is expected to take a final decision on this matter soon.
Most state governments and central government officials have supported the proposal to remove the 12% GST slab. The group of ministers has also expressed consensus on this reform.
Items currently under the 12% slab likely to be shifted include:
Condensed milk, 20-liter water bottles, walkie-talkies, contact lenses, cheese, dates, dry fruits, frozen vegetables, sauces, pasta, jams and jellies, fruit juice-based beverages, carpets, umbrellas, caps, bicycles, household utensils, furniture made from cane wood, pencils, crayons, handbags, jute or cotton shipping bags, footwear priced under ₹1,000, diagnostic kits, marble, and granite blocks.
Also read:
Supplier will have to pay GST even on fraudulent orders, says Gujarat Authority for Advance Ruling
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