READY REFERENCER ON GST

Description

Goods & Services Tax (GST), India’s biggest indirect tax reform since independence has turn 6 years on 30th June 2023. The Indian GST system is still in the making. The GST council is continuously reviewing the situation & making course correction. The GST council has so far meet 49 times & the last meeting was held on 18th Feb 2023 at New Delhi. Tax rate structure has also been revised over the time to improve market competitiveness. Maximum revenue to the extent of around 65% of net GST collection comes from the 18 per cent slab. The 28 per cent slab fetches around 16% of revenue, while approx. 10% of GST collection comes from the 5 per cent rate slab. In a major step, the highest 28% GST rate slab was substantially pruned to only about 50 tariff headings in November 2017, from 224 tariff headings. Thereafter, it is mostly luxury items or sin goods such as tobacco products, motor vehicles, yachts, air conditioners, personal use aircrafts, etc. that remain in this rate slab.