The Goods and Services Tax (GST) Council is considering reducing tax rates on certain items to stimulate consumption while balancing revenue needs, Mint reported, citing sources familiar with the discussions.
The Council may also eliminate the 12 percent slab, shifting items either to the 5 percent or 18 percent categories where necessary. This move aims to simplify the tax structure while providing a consumption boost, according to a source who spoke to Mint on condition of anonymity.
In January, GST collections hit a nine-month high of Rs 1.71 trillion, up 10.9 percent year-on-year. The highest-ever monthly collection stood at Rs 1.92 trillion in April FY25.
The Fifteenth Finance Commission, chaired by N.K. Singh, previously recommended transitioning from the current four-rate GST structure (5, 12, 18, and 28 percent) to a three-tier system, citing revenue implications from past rate cuts.
Queries sent to the finance ministry and the GST Council Secretariat remained unanswered, Mint said. Moneycontrol could not independently verify the report.
Source: Money Control
