GST panel may cut slabs to 3 by dropping 12% rate

The GST Council could discuss, at its next meeting, a proposal to rationalize Goods and Services Tax (GST) rates by reducing the number of slabs from the current four to three by removing the 12% tax slab, people familiar with the matter said, asking not to be named.

- Rajeev Jayaswal

There is "near consensus" among officials and experts advising the Group of Ministers (GoM) discussing rate rationalization that the 12% slab has little continued relevance, and essential items used by common people could be placed in the preceding 5% slab while the rest could be shifted to the next 18% slab, the people added.