Government spokespersons may have ruled out an immediate hike in GST rates. But a panel of government officials from states as well as the Centre is reviewing the current rate structure and is mulling rate hikes in different phases. The calibrated attempt to raise interest GST rates will cushion consumers from sudden price shocks, the officials argue.
According to a report by The Economic Times, rate increases might be carried out through "small increases in lower rates or by moving some items to a higher bracket in tranches".
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Reportedly, about 150 GST-exempt items will be getting a closer look. The current GST rate slabs include exempt items, 0.25 per cent (precious and semi-precious stones), 3 per cent (gold), 5 per cent, 12 per cent, 18 per cent and 28 per cent.
GST collections for December stood at Rs 1.03 lakh crore, indicating a pick-up in consumption. However, the collection is short of the Rs 1.1 lakh crore monthly target set by the government.
Speculations were rife of a GST rate hike prior to the last GST Council meeting on December 18. However, states were not in favour of the rate hike at a time when there is a consumption slowdown. GST Council convenor Sushil Modi had ruled possibility of any changes in GST rates till the revenue stabilises. The council, in its last meeting on December 18, voted for uniform rate of 28 per cent on lotteries across the country.
