Big news for GST payers: Centre may propose 3-slab structure, likely to drop 12% GST rate: Report
According to a CNBC-TV18 report citing sources, the Central government is likely to propose doing away with the 12% GST slab in the upcoming GST Council meeting, expected to be held in late June or July. This proposal is part of a broader consideration to streamline the tax structure to a 3-slab format.
The Centre believes that with GST collections consistently exceeding ₹2 lakh crore, the Council is now in a better position to consider rationalising the tax slabs without impacting revenue neutrality. By removing the 12% slab, the Council may be able to trim rates while keeping overall collections stable.
However, sources also clarified that the Group of Ministers (GoM) on rate rationalisation has not officially proposed trimming any GST rates as of now.
The GST Council is the apex decision-making body on GST matters, comprising representatives from both the Centre and States. Any final decision on slab restructuring will require consensus among all members.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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