PANAJI
The Panchayat Minister Mauvin Godinho said that there is a need to rationalise rates of GST so that revenue receipt increase from 1 lakh crore per month to 1.5 lakh crore per month.
Mauvin Godinho is in member of the Group of Ministers (GoM) appointed recently under Chairmanship of Karnataka Chief Minister Basavaraj Bommai that will make recommendations on tax structure and rationalisation of rates. The seven-member GoM has been assigned the task to review the current GST regime and recommend measures for a simpler structure, said Godinho.
Godinho said that the present regime is seen to be complicated with seven rate slabs ” 0%, 0.25%, 3%, 5%, 12%, 18% and 28%. This has to be simplified to three to four rate slabs.
The Minister said that it is high time that petrol and diesel should be brought under GST by looking at the national interest rather than focusing more on a state-centric perspective.
He, however, said some additional compensation to states should be given.
While most common commodities have been classified under 18 per cent and 12 per cent, there is a proposal to merge them into a single slab with a revenue-neutral rate of 16 per cent, said Godhino.
Godinho said that there is also a need for reforms to plug revenue leakages. Also, some changes are required to stop inverted duty structures (higher rate on raw materials and lower rate on readymade goods).
He said that the tax collected has been spent by the Modi government on social schemes effectively.
