The GST Council in its meeting last week decided to revise tax rates only once in a year in order to give the new indirect tax regime stability.
Sushil Kumar Modi, Deputy Chief Minister of Bihar and the convenor of Group of Ministers on IGST informed this at a Ficci event here and said there was no possibility of any change in Goods and Services Tax (GST) rates till the revenue stabilises.
Modi allayed the fears of any hike in GST tax rate saying the media reports have been wrong in predicting an increase in the rates.
“I want to assure you that not a single state is ready to raise the tax rates. At a time when the economy is in a slowdown if you cannot increase the rates. At these times you cut the duties and tax rates to boost consumption, and not increase them,” Modi said.
On the chances of any reduction in GST rates, he said, “Till the time GST revenue does not stabilise, we cannot think of decreasing the tax rates. In fact, there is no possibility of any change in slabs and tax rates, hike or cut, in the near future.”
Modi further said that the GST Council, in its last meeting, decided to consider any change in tax rates only once in a year and not in each and every meeting.
He said that fake invoicing has become a major issue and the government is looking for ways to check the menace.
The GST Council in its 38th meeting on December 18 had effected a uniform rate of 28% on lotteries sold in or outside the states but had not touched the rates on any articles.
The media was agog with speculation that revenue constraints and a lower GST collection will prompt the Council to increase rates on various goods and services.