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12%, 18% GST rates can be merged to new slab

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Kolkata, Dec 8 (IANS) Bihar Deputy Chief Minister Sushil Modi on Friday said the Goods and Services Tax (GST) Council would examine the possibility of merging the 12 and 18 per cent tax rates to a new slab.

Modi, a member of the GST Council, has also suggested it that price tags displayed on items be inclusive of all taxes.

“The GST Council will put an effort to examine the possibility of merging the tax rates of 12 per cent and 18 per cent to a new slab which will be in between the two tax rates. There are about 50 items in the bracket of the 28 per cent tax rate and the number of items can be reduced from the highest rate.

“All these can be implemented after stabilising of revenue and depend on tax buoyancy,” he said while addressing an interactive session organised by Bharat Chamber of Commerce here.

More than 90 per cent of issues related to tax rates have been resolved after the Council brought down 178 items from higher rates to lower one, he said.

“I have given a suggestion to the GST Council that final price tag on items should be inclusive of all taxes. I hope the proposal would be approved by the Council.”

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