GST Revenue: 18% Slab Contributes Most in FY24
By Rediff Money Desk, New Delhi Dec 02, 2024 16:43
India's 18% GST slab contributed the most to FY24 revenues, while the 12% slab contributed just 5-6%, Lok Sabha was informed. The GST Council is reviewing rates and potential slab mergers.
New Delhi, Dec 2 (PTI) About 70-75 per cent of GST revenues collected in 2023-24 fiscal year came from the 18 per cent slab, while just 5-6 per cent came from the 12 per cent bracket, Parliament was informed on Monday.
Only 6-8 per cent of the FY24 goods and services tax (GST) revenues were from the 5 per cent slab, while the highest tax slab of 28 per cent contributed 13-15 per cent to the revenues in the last fiscal year.
Minister of State for Finance Pankaj Chuadhary shared the details of the proportion of GST collected (excluding compensation cess and other payments) under various tax slabs in 2023-24 in the Lok Sabha.
The GST Council has constituted a six-member Group of Ministers (GoM), under Bihar Deputy Chief Minister Samrat Chaudhary, to suggest rationalisation of GST rates as well as merger of slabs to increase GST revenues.
Currently, GST is a four-tier tax structure with slabs at 5, 12, 18, and 28 per cent.
Under GST, essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and sin goods attract cess on top of the highest 28 per cent slab.
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.
The committee headed by former chief economic advisor Arvind Subramanian on possible tax rates under GST was of the view that the Revenue Neutral Rate (RNR) should be between 15 and 15.5 per cent.
Based on current data of GST returns as available with Goods and Service Tax Network, the average GST rate for 2023-24 was 11.64 per cent, Finance Minister Nirmala Sitharaman said in reply to a separate question in the Lok Sabha.
To a question on whether there exists bitterness and friction between the Centre and the states on the GST arising out of the share to states, Sitharaman said, "There is no bitterness between Centre and states on GST. GST shares to states are settled on a regular basis as provided under the GST law.
Only 6-8 per cent of the FY24 goods and services tax (GST) revenues were from the 5 per cent slab, while the highest tax slab of 28 per cent contributed 13-15 per cent to the revenues in the last fiscal year.
Minister of State for Finance Pankaj Chuadhary shared the details of the proportion of GST collected (excluding compensation cess and other payments) under various tax slabs in 2023-24 in the Lok Sabha.
The GST Council has constituted a six-member Group of Ministers (GoM), under Bihar Deputy Chief Minister Samrat Chaudhary, to suggest rationalisation of GST rates as well as merger of slabs to increase GST revenues.
Currently, GST is a four-tier tax structure with slabs at 5, 12, 18, and 28 per cent.
Under GST, essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and sin goods attract cess on top of the highest 28 per cent slab.
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.
The committee headed by former chief economic advisor Arvind Subramanian on possible tax rates under GST was of the view that the Revenue Neutral Rate (RNR) should be between 15 and 15.5 per cent.
Based on current data of GST returns as available with Goods and Service Tax Network, the average GST rate for 2023-24 was 11.64 per cent, Finance Minister Nirmala Sitharaman said in reply to a separate question in the Lok Sabha.
To a question on whether there exists bitterness and friction between the Centre and the states on the GST arising out of the share to states, Sitharaman said, "There is no bitterness between Centre and states on GST. GST shares to states are settled on a regular basis as provided under the GST law.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 8.29 ( -0.84)
- 38643247
- Srestha Finvest
- 0.63 (+ 5.00)
- 36611024
- Home First Finance
- 1,074.55 (+ 2.10)
- 22560337
- G G Engineering
- 1.85 ( -0.54)
- 20632419
- Ola Electric Mobilit
- 93.26 (+ 6.68)
- 14710812
MORE NEWS
South Africa Seeks Indian Investments: Huge...
South Africa's High Commissioner to India highlights investment opportunities for...
Waaree Energies Secures 524 MW Solar Module Orders
Waaree Energies, a leading solar energy company in India, has secured two solar module...
Suraksha Diagnostic IPO Subscribed 25% on Day 2
Suraksha Diagnostic IPO received 25% subscription on day 2, with Retail Investors...