GST Reform: A big decision was taken in the 56th meeting of the GST Council under the leadership of Union Finance Minister Nirmala Sitharaman. Now there will be only two slabs under the GST system – 5% and 18%. There was no need for voting for this, that is, all the members agreed on it. Know when the two-rate GST system will be implemented and how much revenue will fall due to this and how will it be compensated?
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GST Reform: In the 56th meeting of the GST Council, all the members agreed on the proposal to keep only two slabs – 5% and 18%. There was no need for voting for this. This information has been received from the minister of Himachal Pradesh. According to the information, this system will come into effect from September 22, that is, from September 22, the slab of 12% and 28% will end. Due to this reduction in GST rates, there is an estimated loss of ₹ 93,000 crore in revenue. However, no decision has been taken yet on how this loss will be compensated. At the same time, 40% slab, which is a special rate, is expected to generate a revenue of ₹ 45 thousand crore. Let us tell you that the slab rate of 40% has been introduced and it will be applied on luxury and sin goods.
This was the response of the Finance Minister of Punjab
States fear a drop in revenue due to the reduction in GST rates. However, Punjab Finance Minister Harpal Singh Cheema says that no additional tax will be imposed on the 40% slab. He said that states will suffer losses due to the reduction in GST rates but this is a decision taken in favour of the common people and Punjab stands with its citizens.
Such was the response of Jharkhand
Jharkhand Finance Minister Radha Krishna Kishore says that the state hopes that the increase in consumption will compensate for some of the revenue loss. However, he also said that Jharkhand has demanded compensation for the loss of revenue due to the reduction in GST rates, but there is no clarity on this yet. He said that now it is up to the central government to compensate the state for the revenue loss.
The two-day meeting was completed in a single day
The GST Council meeting started today on 3rd September and was supposed to continue till tomorrow i.e. 4th September but this meeting was completed in a single day. Finance ministers of the states also participated in this meeting chaired by Union Finance Minister Nirmala Sitharaman.
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