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Simplification of GST is an ongoing process and lesser tax slabs will emerge in the long term, Sanjeev Sanyal, Principal Economic Adviser, Union Finance Ministry, has said.
According to him, there could be three major slabs which include a “low 5 per cent”, a 15 per cent slab covering most goods and services, and finally another with a rate of 25 per cent. Apart from these, there will be items included under a zero tax rate or exempted list, under GST.
Long-term possibility
“This is a tax structure that could be a possibility in the long term. I am not saying that this will happen tomorrow,” he said on the sidelines of an interactive session organised by the Bharat Chamber of Commerce.
The current GST rate structure has four tax slabs – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Then there is a list of exempted category goods and services (which have no tax on it). There is also a set of luxury goods and services that carry a cess over and above the 28 per cent tax rate.
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