According to a Bloomberg report, the Modi government is considering increasing taxes on some goods and services. The report said that the move is being considered with the objective of creating a simpler tax rate structure. Let us tell you that this plan to increase the GST rates is being done at a time when elections are going to be held in the big states of the country early next year.
Current rates of GST
The panel meeting on GST is expected to be held in December. The panel is headed by Finance Minister Nirmala Sitharaman. This can be changed from the current four rated system. At present, GST is levied in the country at the rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent. In this, some essential goods like food items are taxed at the lowest rate and luxury goods at the highest rate. People with knowledge of this matter have told Bloomberg that next time the minimum two rate hikes can be done.
Only the common man will suffer
According to the report, one of the lowest two rates can be increased from 5 percent to 6 percent and 12 to 13 percent. The most affected by these two rates is the common man. Under this phased scheme, the rates will be brought down from four to three. The state finance minister can present his proposals in this matter by the end of next month. Bloomberg reached out to the finance ministry for a response, but a spokesperson for the finance ministry has yet to respond.
Let us tell you that the Modi government had implemented GST from July 2017. Under one nation, one tax system of GST , you have to pay only one tax. The biggest feature of GST is that the rate of this tax on any goods or services is the same across the country. That is, the customer or consumer present in any part of the country has to pay the same tax on that goods or services. GST is divided into 3 types- Central GST(CGST), State GST(SGST) and Integrated GST(IGST).
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