Since the implementation of GST, rates have changed on many things. Many states have also demanded mixing of 12 and 18 per cent slabs.
It can be mixed that 12 and 18 percent slabs of GST, know what will be cheap and what will be expensive?
Two slabs of GST can be merged. The government is thinking of merging the two slabs of the Goods and Services Tax (GST). In media reports, quoting senior officials of the central government, it has been said that the government wants to mix 12 and 18 percent slabs.
Instead there will be only one slab. There has been a demand from some states to merge both the slabs for a long time. The 15th Finance Commission has also recommended mixing of this slab. According to a senior finance ministry official, the issue can be discussed with the states in the GST Council meeting to be held in March.
These are GST rates
The country currently has four GST slabs – 5,12,18 and 28 per cent. There is also a special GST slab of 0.25 and 3 percent respectively on precious stones and metals. Luxury and demerit goods like automobiles, tobacco and soft drinks are cessed.
After the implementation of GST, many times the things that come under its purview have been made in and out. In the meetings of GST Council, there has been a change in the things that come under the purview of GST rate.
Can these things be expensive?
Analysts say that when the government merged 17 different taxes into GST, it was thought that this would not affect the revenue received by the Center and the states. Now when 12 and 18 per cent slabs will be merged, many things can be expensive.
If a slab is fixed between 12 and 18 per cent, then things falling within the range of 12 per cent will become expensive. If the government approves this proposal then things like ghee, butter, will become expensive, while products like soap, kitchenware can be cheap. Actually, the government has already been in favor of joining these two slabs. Former Finance Minister Arun Jaitley was in favor of mixing this slab.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.