Industry body PHD Chamber of Commerce and Industry has urged the GST Council for rationalising rates in its forthcoming meeting.
As per the industry body, the current rates are not in-sync with demand creation and employment generation in the country.
“We urge the government to rationalise the GST rates into three major slabs of 5 per cent, 10 per cent and 15 per cent along with a few ‘Sin Goods’ in the slab of 28 per cent,” said PHD Chamber of Commerce and Industry President Pradeep Multani.
Accordingly, the industry body said that items in category of 12 per cent rate should be reduced to 10 per cent and items in the category of 18 per cent rate should be reduced to 15 per cent.
“The items in 0 and 5 per cent category should be kept as it is.”
“There should not be more than 25 items in the category of ‘Sin Goods’ which is rated at 28 per cent.”
According to Multani, the rationalisation of the tax slabs would create tremendous demand in the economy, subside the inflationary pressures, enhance the sentiments of producers for production and create employment opportunities for the growing workforce in the country.
“The lower taxes are always good to enhance the tax base and tax to GDP ratio,” Multani said.
“Going ahead, a level playing field for industry would be crucial for the promotion of Aease of doing business in the country.”