Number of slabs in GST will be brought down later: MoS Finance

Kolkata, August 12

The central government will bring down the number of tax slabs in the Goods and Services Tax (GST) regime with improvement in revenue, a union minister said on Saturday.

With the exempted category, the existing tax slabs are of 5, 12, 18 and 28 per cent.

Defending the different slabs, Union Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal said the central government was trying to introduce the new tax system with the consent of states and did not want to impose it.

"The Centre could have taken decisions in the GST council on the basis of majority but that was not done," the minister said at an interactive session organised by Indian Chamber of Commerce.

Meghwal also said as many as 13.2 lakh new dealers have registered themselves in the system so far after the implementation of GST. Out of which, 56,000 were from West Bengal, the highest in India.

He said total number of registered dealers in the indirect tax system in the pre-GST regime was 80 lakh.

Describing the GST Network (GSTN) as a "perfect system", he said: "We must be facing some teething problems but it is a perfect system. The new system will remove inspector raj and there will be no human interface. The government will improve the GSTN system". He said the GST Council would take its decision on how to extend the excise duty benefits for the entities with operations in the northeast.

Later, at a session organised by the Merchants' Chamber of Commerce & Industry, the Minister said around 1.78 lakh shell companies have been identified by the government.

With the objective to improve corporate governance and the ease of doing business, the Centre brought amendments to Companies Act and the Companies (Amendment) Bill, which was passed by the Lok Sabha, is expected to be passed by the Upper House in the next session, he added. — IANS