Lowest GST slab to be raised by 3 percent? Here’s what the government said

There has been speculation in the market and among tax analysts that the Centre may be looking to rationalise the GST (Goods and Service Tax) structure by elevating the lowest slab of 5 percent to 8 percent. However, the Centre has categorically rejected such media reports which claim that the GST panel is mulling taking up thew lowest slab to 8 percent.

There is no such proposal from the GST council, news agency ANI reported on Monday citing government sources. A special Group of Ministers (GoM) consisting of 7 members was formed last year and was tasked by the council to look into the issue of rate rationalisation.

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This GoM, chaired by Karnataka Chief Minister Basavaraj S Bommai is yet to give any view on the matter. The group, which also includes finance ministers from West Bengal, Kerala, Goa, Bihar, Uttar Pradesh and Rajasthan is expected to meet to meet early next month, PTI reported.

The 7-member GoM has not taken up a proposal to increase the GST slab threshold from 5 percent to 8 percent, it cited anonymous sources.

The GST structure currently has 4 slabs of 5 percent, 12 percent, 18 percent and 28 percent. Gold and

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The GST has a four-tier structure, consisting of 5 per cent, 12 per cent, 18 per cent and 28 per cent rates. Additionally, a three percent tax is levied on gold and gold jewellery.