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Dec 09, 2019
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Brace for rise in GST rates as Centre looks at Rs 1 lakh crore additional revenue
GST Council meetings have usually focused on cutting rates for products but that routine may come to a halt as revenue collection under the indirect taxation system has dropped drastically. A few days ago, Centre informed states that there are several concerns with regards to revenue collection and added that it will not be able to compensate them for losses. When the GST Council meets in the second fortnight of December, it is likely to discuss ways to shore up revenue and it could result in some exempted items could make a comeback under taxation while some items could be moved to a higher GST slab, reports indicate. The development comes particularly after Centre failed to pay GST compensation cess to at least five states. According to a report on the Times of India, the GST Council may also discuss restructuring of slabs under GST. Quoting top sources, the publication said the base slab of five per cent will be increased to 9-10 per cent while the 12 per cent tax slab will be removed.
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