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Inverted Duty, Slabs on GST Council Radar, Says Bajaj

The goods and services tax (GST) has significantly lowered the compliance burden on businesses as well as the incidence of taxation on them, revenue secretary Tarun Bajaj said, identifying a reduction in the slabs and addressing the inverted duty structure as next on the agenda for the levy that has marked four years.

“We still have issues on inverted duty structure, tax rate. The GST Council will over a period of time take a view on these. These issues have been flagged to the council a couple of times and it is cognizant of that,” Bajaj told ET in an interview. “In the next one-two meeting, we will concentrate on these issues to put these before the council to take a decision.”

Owing to Covid, the government hadn’t wanted to make too many changes in the past year, he said.

Bajaj said there is a recommendation that the merger of the 12% and 18% bands should be considered. “If I look at my figures, 5% is about 22% (items) 12% is 18%,18% is 47%-these are the three main rates. These can also, over period, be brought down to two,” he said. S-ET

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