Centre may consider tax cuts for products in highest GST slab - Taxsure Consultancy Services

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Monday, June 10, 2019

Centre may consider tax cuts for products in highest GST slab

GST

More items may be knocked off the highest GST slab in an attempt to boost demand, as per a report in The Economic Times.
The economic slowdown has most states in favour of a tax reduction. Worried about the demand slump and unemployment, they communicated these concerns to the Centre as well, it said.
The Indian economy slipped to a five-year low of 6.8 percent in FY19, with January seeing the lowest numbers at 5.8 percent.
The GST Council, under new Finance Minister Nirmala Sitharaman, may meet ahead of the Budget presentation on July 05, where the issue could be discussed.
Automobiles are one product subject to 28 percent GST. The impact is adverse and the passenger vehicle segment saw a 17 percent drop in April and a comparable decrease in May as well, the paper noted.
While reducing taxes would reduce rates encouraging consumers to spend more but the final decision will depend on the revenue position.
Apart from this, the Council may pick up proposals for electronic invoicing and extension of the anti-profiteering framework as well.

Source: Money Control.

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