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Home >> News >> 12 Percent & 18 Percent Tax Slab of GST can be Merged

12 Percent & 18 Percent Tax Slab of GST can be Merged

Posted on: 01 Dec, 2017 Tags   GST Arun Jaitley Finance Minister

IndiaNewsonWeb: 01 Dec, 2017, Finance Minister Arun Jaitley has indicated to merge 12 percent and 18 per cent rates after taking the pace of growth in revenue collection under the Goods and Services Tax (GST) system. He said that only a small list of luxury and harmful items will remain in the highest GST rate of 28 per cent.

At the HT Leadership Summit, Jaitley said, "The new indirect tax system was done with the initial rates so that the tax burden could be kept at the level of the GST higher or earlier. He said that the country will gradually move towards such a system which has two GSTs. However, how fast this will be depends on the state of revenue to get the government.

Let the government introduce the new indirect tax system GST in July. There are currently four tax slabs 5, 12, 18 and 28 percent. There is also zero percent tax on some items of daily consumption.

28 percent tax slabs were listed lower

He said, "We have reduced the list of 28 percent tax, we can reduce it further." At one level it can be limited to luxury and harmful items. He said that with the improvement in GST collection, the government will see whether the scope of the slab can be 12 and 8 per cent.

He said that adding 12 and 18% tax slabs would mean that some products with 12 percent of the scope would be sent in five percent tax. This will result in the second rate of five percent and x percent. Along with this, the highest tax slab of 28 percent will be a very small list of products.

Reducing fiscal deficit

About the fiscal deficit, Jaitley said that he wants to stay on the path of reducing the fiscal deficit target. The country's fiscal deficit touched 96.1 percent of the budget estimate during the April-October period. The Minister said, the Fiscal Responsiveness and Budget Management FRBM report is being considered. As far as the deficit in fiscal deficit is concerned, our record has been very good in the past three years. We would like to maintain this order. The government has set a target to bring the fiscal deficit down to 3.2 percent of GDP in 2017-18, which was 3.5 percent in the last year.

Must pay the first dues

At the same time, the Finance Minister made it clear that the proposers who bid for the repurchase of their lost assets will have to pay the earlier arrears. He said that the promoters can bid in the auction of such assets but for this, they will have to pay the arrears on their non-executed assets NPA accounts first. He said that there is no complete ban on the bidding by affiliate promoters for the companies being sold for the recovery of the dues of the banks. 

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