GST council may lower tax rate on high collections: Reports

GST council may lower tax rate on high collections: Reports

05/09/2017 12:04

A Government Official has said that the GST Council may consider lowering tax on items of common consumption if the high trajectory of collections continues over the next few months.

Commenting on the issue, a Government Official told the media, “The first-month collection under the new Goods and Services Tax (GST) regime has been encouraging and if the rising trend continues till December, it would make a case for reduction of tax rate.”

“The tax reduction could be either on items of common consumption or a cut in headline rate which will benefit consumers,” he added.

As per reports, India’s maiden GST revenue mop-up got off to a strong start with collection of Rs 92,283 crore in July from just 64.42 per cent of the total taxpayer base. Of this, as much as Rs 14,894 crore has come in from the Central GST (CGST), Rs 22,722 crore from State GST (SGST), Rs 47,469 crore from Integrated GST (IGST) and Rs 7,198 crore from compensation cess levied on demerit and luxury goods.

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