Officials are also considering taxing certain items that were previously exempt, such as treatment in 'expensive' private hospitals and high-value company home leases
To raise additional revenue, the Goods and Services Tax (GST) Council may raise the base rate to 9-10 percent from five percent, reports The Times of India.
The GST Council will reportedly discuss the option of moving 243 items to the 18 percent slab and scrapping the 12 percent slab. If this fructifies, there will be three GST slabs: five percent, 18 percent and 28 percent.
Rejigging the GST structure may help raise an additional Rs 1 lakh crore in revenue, the report said, adding that the increase in levies could raise the effective tax rate to 12.5-12.75 percent from the current 11.6 percent.
Moneycontrol could not independently verify the story.
Officials are also considering taxing certain items that were previously exempt such as treatment in 'expensive' private hospitals and high-value company home leases, the article quotes sources as saying.
The hike in GST rates may not have a significant impact on overall inflation, government officials told the paper.
The Centre and a few states are locked in a tussle over delayed payment of GST compensation. The monthly compensation bill next year could be higher than Rs 20,000 crore since the Centre has to compensate states in case the revenue growth is below 14 percent.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.