GST slabs rationalisation will depend on revenue buoyancy: Arjun Ram Meghwal

Rationalisation of tax slabs allocated for various goods and services under the newly-introduced GST would depend on the rise in revenue collection in the days to come.
Arjun Ram Meghwal (File Photo)
Arjun Ram Meghwal (File Photo)

NEW DELHI: Rationalisation of tax slabs allocated for various goods and services under the newly-introduced GST would depend on the rise in revenue collection in the days to come, MoS for finance and corporate affairs Arjun Ram Meghwal said on Saturday. 

Presently, the system slots items under five broad slabs -- including exempted category at zero, five, 12, 18 and 28 per cent. An additional GST compensation cess is levied on certain products above the basic slab.

While pre-GST, only 80 lakh dealers were registered, another 13.2 lakh had been added post its introduction, of which 56,000 were from West Bengal only, the highest among the country.

Meghwal also addressed concerns on the GST Network (GSTN), pointing out that it would be continually improved.

“Registered dealers may be facing some teething problems. But the system is perfect,” he said.
The dealers would also have to maintain computerised records with regards to input tax credit and reverse charge mechanism, Meghwal said, adding that all these were required to eliminate the shadow economy.

Regarding tax incentives in areas like the north-east, HP and Uttarakhand after introduction of GST, Meghwal said it would be decided by the GST Council.

Meghwal said that the government had introduced GST after consulting all the states. Had there been an opposition from a single state, the government would not have introduced it.

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