The Centre may implement the Goods and Services Tax (GST) rate overhaul at the earliest to spur demand in the economy, CNBC-TV18 reported on Monday.
According to sources cited by CNBC-TV18, the government is likely to even press the GST Council to approve the changes for immediate effect.
The government is reportedly concerned about the possibility of slowing sales across key sectors and is working on mechanisms to address states’ apprehensions over potential revenue losses arising from the cuts.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, is slated to meet in New Delhi on September 3-4 to deliberate on the Centre’s proposal for a simplified two-rate structure of 5% and 18%.
According to sources cited by NDTV Profit, the rollout of the new tax slabs is likely around September 22, to coincide with the Navratri festive season.
Notifications are anticipated within five to seven days of the Council’s decision.
Last week, the Group of Ministers (GoM) on GST rate rationalisation had approved the Centre’s push for a simplified two-slab tax system.
Bihar Deputy Chief Minister Samrat Choudhary said on August 21 that the GoM has accepted the proposal to scrap the existing 12 percent and 28 percent tax rates and move towards a dual structure of 5 percent and 18 percent.
The Centre’s proposal will be placed before the GST Council during the upcoming meeting.
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