Homeeconomy News

    Govt working towards a single GST rate, cement to be in lower slab: Jaitley

    Govt working towards a single GST rate, cement to be in lower slab: Jaitley

    Govt working towards a single GST rate, cement to be in lower slab: Jaitley
    Profile image

    By CNBC-TV18  IST (Updated)

    Mini

    Jaitley said that the government eventually plans to have "GST which will have only slabs of zero, 5% and standard rate with luxury and sin goods as an exception."

    Finance Minister Arun Jaitley, on Monday, said that the government's next priority with regards to the Goods and Service Tax (GST) will be to bring cement under a lower slab.
    In a relief to the common man, the GST Council on Saturday cut rates of commonly used goods and services, including TV screens, movie tickets and power banks.
    The council rationalised the 28 percent slab by bringing down the tax rate on seven items in the highest tax bracket, thereby leaving only 28 items in the slab. Now, the 28 percent slab is restricted to only luxury and sin goods, apart from auto parts and cement -- tax rates on which could not be cut due to the high revenue implication.
    Jaitley, in a Facebook post titled 'Eighteen Months of the GST', wrote, "We were faced with a situation with a large number of commodities being taxed heavily in the pre-GST regime. The Congress legacy of indirect tax was a 31% tax. We transiently put them in the 28% slab. As the revenues kept increasing, we started bringing down the rates. Most of the commodities have seen tax reduced. Today, barring tobacco products, luxury vehicles, molasses, air-conditioners, aerated water, large TVs, and dish washers, all 28 items have been transferred from 28% slab to 18% and 12% slab. Only cement and auto parts are items of common use which remain in 28% slab. Our next priority will be to transfer cement into a lower slab. All other building materials have already been transferred from 28% to 18% and 12%. The sun is setting on the 28% slab."
    "With the GST transformation completed, we are close to completing the first set of rate of rationalisation i.e. phasing out the 28% slab except in luxury and sin goods. A future road map could well be to work towards a single standard rate instead of two standard rates of 12% and 18%. It could be a rate at some mid-point between the two. Obviously, this will take some reasonable time when the tax will rise significantly," he added.
    Jaitley said that the government eventually plans to have "GST which will have only slabs of zero, 5% and standard rate with luxury and sin goods as an exception."
    After the government announced GST rate cut, Congress President Rahul Gandhi said that the centre had taken the decision keeping elections in mind.
    "Now feeling scared after people's verdict in the three states, Modiji is trying to make the Gabbar Singh Tax as GST. People understand it all. Gabbar you are gone," he said.
    Reacting to the criticism, Jaitley, in his blog, wrote, "Those who oppressed India with a 31% indirect tax and consistently belittled the GST must seriously introspect. Irresponsible politics and irresponsible economics is only a race to the bottom."
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng