PHDCCI calls for 3-tier GST, capping highest slab at 18%
Industry chamber PHDCCI on Wednesday called for a 3-tier GST rate structure, with the highest slab at 18 per cent, to help boost consumption and reduce evasion.
Industry chamber PHDCCI on Wednesday called for a 3-tier GST rate structure, with the highest slab at 18 per cent, to help boost consumption and reduce evasion. Under the Goods and Services Tax (GST), a four-rate structure that exempts or imposes a low rate of tax 5 per cent on essential items and top rate of 28 per cent is levied. The other slabs of tax are 12 and 18 per cent. Besides, a 3 per cent rate is applied on gold, silver and processed diamonds.
PHDCCI President Sanjay Aggarwal said an ideal GST rate structure would be to have two to three slabs of GST rates. ''We suggest the lowest rate at 5 per cent, a moderate rate of 12 per cent, by clubbing the category of 12 and 18 per cent, and the highest rate of 18 per cent for luxury and sin goods only,'' he said.
This rationalisation of rates will increase consumption and tax revenue, reduce compliances, reduce tax evasion and help to make GST as good and simple tax, as simplified tax regime is the need of hour to reduce litigation pertaining to tax matters.
''This will also lead to removal of hardships and provide ease of doing business and compliance among taxpayers,'' Aggarwal added. Aggarwal further said that the government had rationalised GST rates in the 28 per cent slab category and taking out about 200 items from the highest slab and putting in either 18 or 12 per cent.
Still products such as air conditioners, and cements are charged at 28 per cent GST, he said. A nationwide GST, which subsumed 17 local levies like excise duty, service tax and VAT and 13 cesses, was rolled out on July 1, 2017.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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- Sanjay Aggarwal