Modi, who also heads high-level minister panel on GST, said this slab rationalisation will likely to be taken up after the GST collections have reached Rs 1 trillion.
The Goods and Services Tax (GST) Council might replace the 12 per cent and 18 per cent slabs with a 14-15 per cent rates, said Bihar Deputy Chief Minister Sushil Modi.
He said while addressing a seminar on the GST, organised by the Institute of Chartered Accountants of India (ICAI).
After rates rationalisation, the country will have four GST rates.
Modi, who also heads high-level minister panel on GST, said this slab rationalisation will likely to be taken up after the GST collections have reached Rs 1 trillion. However, experts claim, as says Business Standard report, this might take nine months to a year to reach this target. Except for April, the GST has never yielded revenue of Rs 1 trillion.
The GST Council, in its 28th meeting held last Saturday, slashed rates on scores of items.
The Council has provided reliefs from GST taxation in a slew of services. These sectors are: agriculture, farming and food processing industry; education, training and skill development; and pension, social security and old age support.
Hotel industry has been given major relief by providing that the rate of tax on accommodation service shall be based on transaction value instead of declared tariff.
As a green initiative, GST on supply of e-books has been reduced from 18% to 5%.
The Council also approved the new GST return formats and associated changes in law.
It gave its go-ahead to quarterly filing of return for the small taxpayers having turnover below Rs 5 crore as an optional facility.
Source: Business Standard, media reports