The rate rejig decision taken by the GoM on GST rate rationalisation under Bihar Deputy Chief Minister Samrat Chaudhary would lead to a revenue gain of Rs 22,000 crore, the officials added. The GoM proposed reducing GST on packaged drinking water of 20 litres and above to 5 per cent from 18 per cent. Also, GST on exercise notebooks will be reduced to 5 per cent from 12 per cent, the GoM proposed. Currently, GST is a four-tier tax structure with slabs at 5, 12, 18, and 28 per cent. The average GST rate has fallen below the revenue neutral rate of 15.3 per cent, prompting the need to start discussions on GST rate rationalisation.

Source: Economic Times October 21, 2024 03:37 UTC