News

Inflationary concerns may delay GST rate rationalisation: sources

Inflationary concerns may delay GST rate rationalisation: sources

The current price situation leaves hardly any scope for rationalisation of GST rates on goods and services, sources said on Wednesday.
Goods and services are taxed in four slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent under the GST regime. It was being considered to reduce these tax slabs possibly to three, an exercise which would have involved raising taxes on some items and a reduction in others. Besides, gold and gold jewellery attract a 3 per cent tax.

But with the inflation rate ruling at an all-time high, there is hardly any scope for GST rate rationalisation, sources said.
Sources further said that while the economy was recovering from the impact of Covid in 2021, geopolitical tension this year would again have bearing on it.
“The Council in the past was not unmindful of the then prevailing situation,” sources said.

Top