GST slabs to be reduced to three

In the long-term, the goods and services tax (GST) slabs may come down to three, in addition to the exempted category, Sanjeev Sanyal, principal economic adviser to the finance ministry said.

The three slabs could be a low of 5 per cent, a central 15 per cent (merging 12 per cent and 18 per cent slabs ) and a top rate of 25 per cent, he said here on Saturday at an interactive session organised by the Bharat Chamber of Commerce.

“In the long-term, the GST rates might be squee­zed to three as more and more simplification will be done,” Sanyal said.

Presently, there are four GST slabs of 5, 12, 18 and 28 per cent, plus the exempted category, which attracts zero per cent GST. He said a bulk of the goods might get taxed in the 15 per cent slab.

Earlier this week, Bihar deputy chief minister Sushil Modi, who also heads high-level minister panel on GST, had said the slabs might come down in the future.

Sanyal said after GST, the government is planning to undertake legal and administrative reforms. “The inability of the legal system to enforce contracts needs to be addressed and this requ­ire reforms. The administrative reforms is also on the  radar,” Sanyal added.

source:http://www.mydigitalfc.com/plan-and-policy/gst-slabs-be-reduced-three

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