The Central Board of Indirect Taxes and Customs on Tuesday requested people and media outlets to avoid speculations on the Goods and Services Tax rate cuts. In a post on X, formerly known as Twitter they added that the decision will be announced after the GST Council meet which is scheduled on Sept. 3 and 4.
"Premature speculation gives rise to baseless rumours and may cause volatility in the markets," the board responsible for administering indirect taxes said in a post on X.
It is requested that people and media kindly avoid speculation on GST rates.
👉🏻Decisions in this regard are taken collectively by the GST Council which comprises of the Centre and States.
👉🏻Premature speculation gives rise to baseless rumours and may cause volatility in the…The GST Council that comprises of the Centre and States will take a collective decision, explained CBIC.
The council, comprising finance ministers of all states and UTs besides the Centre, will deliberate on the recommendations by the Group of Ministers on rate rationalisation, compensation cess and health and life insurance. The GoM comprising state ministers met earlier this week and, in principle, agreed to the Centre's proposal for a two-slab GST.
According to the reform proposed, GST should be a two-rate structure of 5% and 18%, classifying goods and services as 'merit' and 'standard'. A special rate of 40% will be levied on select few items like ultra-luxury cars and sin goods. Meanwhile, some labour-intensive items will continue to enjoy concessional lower rates of 0.1%, 0.3%, or 0.5% to support employment-intensive sectors.
Currently, GST is a four-tier structure of 5%, 12%, 18% and 28%.
Prime Minister Narendra Modi, during his Independence Day speech, announced the next-generation GST reforms, dubbed GST 2.0, to rationalise the existing tax rates. Calling GST one of the most significant reforms since its introduction in 2017, Modi stressed the need for the upcoming changes to benefit the common man, farmers, the middle class, and MSMEs.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
