GST tax slabs to be reduced?

New Delhi Sept 12: The Government may further simplify the tax system. Sources say that the government may reduce the current 4 tax slabs in GST to dual slabs of 12 and 18 or even single rate of 18 % in future.

Recently the GST Council has reduced the tax rates of 30 items and earlier in May the government has reduced the tax rates on 66 items of mass consumption.

However, in the last Council meeting center has asked the states to refrain from seeking many exemptions from the top tax slabs because these items yield higher revenue.

Currently based on pre equivalence rate and based on the class of consumption 4 tax slabs have been formed .i,e 5,12,18,28 %, and some items are exempted from the GST and a higher cess is levied on the luxury and sin goods.

However, sources say that the government may not reduce the tax rates in next meeting itself but may gradually merge the rates based on tax collections received.

Some officials have said that the govt may first include petrol its products and Real estate under GST because so that more revenue is collected so that there would be a scope for reduction in rates.