Kolkata – As the revenue rate improves, the government might bring the slabs of tax down. Arjun Ram Meghwal, the minister of finance and corporate affairs, has hinted as much.
GST has five different tax slabs. This also includes a category of exempt. The four other slabs are 5%, 12%, 18% and the 28%. The government may consider dropping the tax slabs once it is convinced of the revenue improvement.
The inception of the tax slabs had been to make sure that the small scale business owners are unaffected by the tax implementation. Additionally, the objective of the GST implementation is to simplify the taxation which earlier came with a lot of confusion.
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Earlier there had been several lists, including union, state and concurrent. However, with the implementation of GST, the nation would see uniformity in the taxation system. The GST Council could have decided to take the state majority agreement. However, that has not been done due to significant reasons.
The issue of opting for tax-free areas for manufacturing including Guwahati is under consideration. The council would watch and wait for the preliminary report of the tax reformation before making any decision.
Arjun Ram Meghwal says that approximately 13.2 lakh, people have registered for GST. West Bengal has the largest number of dealers registering for GST. Earlier it had been 80 lakh registered dealers.
Also, the new amendment bill for the companies would see the solidification of corporate norms. The norms are designed in a way that the companies find the comfort zone in holding annual meetings.