GST Rate Rationalisation: Group of Ministers to Provide Status Update Next Month, Says CBIC Chairman
By: Admin | July 27, 2024 | Categories: GST Recent News
Three-Slab GST Rates:
Taxation, customs, and excise in India are set to witness a paradigm shift as laws related to these will be reviewed, said Sanjay Kumar Agarwal, Chairman, Central Board of Indirect Taxes and Customs (CBIC). In an interview with Republic Business, Agarwal mentioned that a Group of Ministers (GoM) scrutinising GST rates will present a status update on GST rationalisation at the next GST council meeting in August.
Bringing Fuel Under GST:
There is a growing demand to bring petroleum products under GST, which according to Agarwal, would require a graded approach to ensure revenue neutrality. The five petroleum products under consideration are crude oil, natural gas, petrol, diesel, and ATF. Crude oil and natural gas are primarily used as industrial feedstock, while petrol, diesel, and ATF generate significant revenue and are currently subject to Union Excise Duty or NWED.
Online Gaming Taxation:
Agarwal highlighted the significant tax revenue from online gaming, which has increased four-fold to Rs 1,150 crore per month since amendments were carried out in October. This revenue growth marks a substantial increase from the earlier Rs 250 crore per month.
Duty Reduction on Mobile Phones and Gold:
The duty on gold has been reduced from 15 percent to 6 percent to support the gems and jewellery sector, which is crucial for exports and domestic manufacturing. Similarly, the duty on mobile phones has been reduced from 20 percent to 15 percent, following the successful establishment of a domestic manufacturing ecosystem.
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