(LiveMint)
Prime Minister Narendra Modi on Tuesday promised to ensure that 99% of items attract goods and services tax (GST) at 18% or lower, leaving sin or luxury items only to be taxed at the highest rate of 28%. Speaking at the Republic Summit in Mumbai, Modi said he had given his suggestions to the federal indirect tax body, the GST Council, which is set to meet in New Delhi on Saturday. Modi’s promise would require cutting tax rates on about 25 categories to 18% or lower from 28%. Currently, 39 of the around 1,378 tariff categories are taxed at 28%. Modi’s suggestion to the council on tax rate reduction comes at a time when indirect tax collections have lagged the monthly average of ₹1 trillion required for this fiscal to meet revenue targets of Union and state governments.
