increase-prices

NEW DELHI: Amid strong opposition from the states, the central government is moving to reduce the four slabs of GST to three. The tax slab of 12 percent will be eliminated. The products under it may be shifted to 5% and 18% slabs. The 12% slab includes many daily necessities. If they are shifted to 5%, their prices will decrease. If they are shifted to 18%, their prices will increase. The highest slab is 28%.

The GST Council meeting to be held at the end of this month or early next month may discuss the proposal. There is no consensus in the sub-committee convened by Bihar Deputy Chief Minister Samrat Chaudhary on this proposal. Kerala Finance Minister KN Balagopal is also a member of this sub-committee. The states may raise strong objections in the meeting.

Items falling under the 12% slab