GST Council Meet: In a major relief to common people, the Goods and Services Tax (GST) Council on Saturday slashed rates of 33 items from 18% to 12% and 5%, according to Puducherry Chief Minister V Narayanasamy said, who attended the 31st GST Council meeting chaired by Finance Minister Arun Jaitley at Vigyan Bhawan, apart from other finance ministers all the states.
“The original demand by Congress that all goods should come down to 18% & below except luxury items has been agreed by the Government. Except for 34 items, all other will come down to 18% & below,” ANI quoted Puducherry Chief Minister V Narayanasamy as saying.
Earlier this week, Prime Minister Narendra Modi had said the central government is planning to bring 99 per cent of items below the 18% GST slab. He also warned of stringent action against defaulters of bank loan and fugitives.
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The GST Council meeting is being held against the backdrop of lower than budgeted collection so far. The council may also discuss ways to increase collection and stop tax evasion. The government has always said that more items would be brought down to 18% or less rate but only if there was enough revenue buoyancy.
In the first eight months (April-November) of the current fiscal, the government has mopped up over Rs 7.76 lakh crore from GST. The 2018-19 budget had estimated annual GST collection at Rs 13.48 lakh crore, which means a monthly target of Rs 1.12 lakh crore.