From Our News Desk : Eastern Chronicle 24×7, The 23rd December, 2024.
The simplification of the Current Slabs on Indian GST system, will also promote economic activities, particularly consumptions- that which would ultimately lead to higher tax revenues.
Most States don’t seem to be in favour of changes to the existing five main goods and services (GST) tax slabs : starts with 0, 5, 12, 18, and 28 percent (%). The general argument being advanced is that since gross GST revenues have been growing- from a monthly average of Rs.94,734 crores in 2020-21 to Rs.1,23,608 crores in 2021-22, Rs. 1,50,640 crores in2022-23, Rs.1,68,187crores in 2023-24 and Rs.1,84,724crores in April- July, 2024- this the rate structure has ” stabilised “.Why should a making of e-invoicing is mandatory for a firm,when it’s turnover crossed five crore, and use of artificial intelligence and machine learning.
Its time for embarking on tax rate rationalisation. Reducing the numbers of tax slabs, into two or three in highest, as well as reviewing the items under which slab to fix.
Most probably in unfairness, the rate of GST applicable on several items are well known. But reasons attracting behind the percentage of tax of GST on that particular items are very ‘ Unknown ‘. Why should Cement, a basic Construction Meterial, GST should be 28%….?
The same silly Questions can arise on a 18% GST payable on Medical, and or Life Insurance Premiums payable everytime intervals.
On this issue, one Union Minister told, ‘ It’s amounts to taxing individuals seeking to purchase ‘Coverage’ against ” Life’s uncertainties “.
Similarly, in Milk, there’s not attacking any GST, but in Milk powder it’s GST 5%, when milk produce Butter and Ghee, it attract 12% GST. A 12% GST on Milk Fat, But a 5% GST on vegetable Fat (edible oil).
Actually, multiple Slabs are recipe of economics volume. Just on Saturday, that a non-branded pop corn, mixed with salt and spices, would attract a 5% GST, but pre-packaged and branded popcorn 12%, and caramel popcorn with sugar will attract 18% GST respectively.
